Multiple – Complex Valuation Models

Multiple – Complex Valuation Models

Business Valuation Principles made easy for any executive to understand with insight on How to Increase Your Business Value Financially, Operationally and Strategically. I understand business theory, and I hope to make it easier for you to understand as well.  In the process, I try to point out common errors in the valuation process.

I believe KNOWLEDGE IS POWER.  I like to detail at least nine different methods to value a business when speaking to businesses and CEO’s. The nine different valuation calculations use three established valuation methods:

• Asset Method
• Market Method
• Income Method

The more valuation calculations with detailed assumptions, the easier it will be to predict company value. Multiple & complex valuation models – timeliness, responsive, and the reporting processes don’t have to be burdensome.

The assumptions from using my methods can reveal how the company may achieve a higher level of performance and value. In a negotiation, an owner can push a higher value by emphasizing the reasons and circumstances that would create that higher value. One value number probably does not tell you the real potential or value of the business. Two to five numbers give you a good range of values and provide solid data sets, to see where the value of your company may be.

It is recommended that a business valuation be done every two years. With my nine methods and calculations, it can be used as a metric for management performance.  Ask yourself three basic questions:

1. Are the net assets improving?
2. Is the cash flow better?
3. What impact does that have on the market value method?

If the net cash flow is increasing, the statistically projected method will show a rise. I discuss these nine valuation concepts in my book Business Valuation Principles by Dale S Richards.

Excel Management, provides high-quality valuation services, here what this customer has to say.

Brad Robinson, CEO, Predictive Tech, Group, Inc., has used Excel Management Systems, Inc., Dale Richards’s team to conduct four key business valuations for his blocking IP predictive disease technologies. His four companies have almost a billion dollar valuation and these valuation analyses, calculations, and reports are critical for a major IPO. Dale Richards speak all over the world on Business Valuation Principles – How to Increase Your Business Value, Financially, Operational and Strategically. He is also an author on the topics.

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