Business Valuation – Level 1
(Cash Flow, Market-Based)
EquityNet’s Level 1 Business Valuation provides an inexpensive and fast way to estimate the value of a private business by considering primarily the cash-flow-generating ability of the business and market-based valuation data. Often called the “VC Method” of valuation, this methodology is an accepted approach in the private equity industry for estimating business valuation.
Once EquityNet obtains necessary business information, a Level 1 Business Valuation can typically be completed for the client in 2-3 business days.
EquityNet leverages its advanced web software, Enterprise Analyzer, to capture a wide range information about the business and generate a quick understanding of the business model and financial projections. This information is used to develop a valuation model for the business that considers the following primary elements in the valuation estimate:
- Financial projections and cash-flow-generating ability of the business
- Proprietary market-based valuation correlations for fair-market value
- Proprietary market-based risk rates for discounting free cash flows
Web Software Used in Obtaining Business Information
EquityNet specializes in business valuation services and offers three levels of valuation to accommodate the various interests of clients for cost, turnaround time, and certainty of result. A Level 1 Business Valuation is intended for clients who want a market-based valuation estimate at relatively low cost. For clients seeking a more comprehensive valuation analysis or certified valuation appraisal, EquityNet’s Level 2 and 3 Business Valuation services may be more appropriate.