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Questions & Answers
Q: Awesome tool, thank you! Is there a way to see what the cash flows are when getting a loan for the valuation amount or a portion of it?
A: Current Operating Performance calculates both Owner Cash Flow and Interest Costs. See the help section at https://bizpep.com/businessvaluation.html .. By valuing the business initially with no Finance or Interest component i.e. 100% equity you can see an initial valuation with the required return on the Total Investment. Once you have established valuation details you can then insert Finance details to determine the impact on the business and owner cash flow for different finance amounts.
Question and Answer Item 2058534 - Browse All Question and Answer Items
Q: New Resource pages?
A: We have added Resource pages with articles providing business and investment insight at Business Investment Resources https://bizpep.com/businessinvestmentresources.html and Share Investment Resources https://bizpep.com/shareinvestmentresources.html
Question and Answer Item 2058523 - Browse All Question and Answer Items
Q: Is there a place to enter the fixed assets my client is also selling with his business? The way I understand your software, is that it only values the earnings of the business, not the assets you are selling? Is that correct?
A: Asset inputs are classed as Business Assets with their associate life span which are depreciated, property assets at market value, and other. These inputs are on the Input sheet under Valuation Data. The Valuation Data section of Help includes details https://bizpep.com/businessvaluation.html . The input used depends on what the asset is. If the fixed assets are part of the business and not property they should be included as Business Assets. If not related to the business ie the business is fully functional without it could be treated as completely separate and its market value simply added to the business valuation. If it is included as a component of the valuation it will impact the business valuation based on the required rate of return. Replacement Value of Business Assets Input the replacement value of physical business assets. Exclude property. Consider vehicles, plant and equipment. This forms a component of the total business investment. Life of Assets (years) Input the average life of the assets. The Replacement Value of Business Assets will be divided by the Life of Assets to provide an indication of annual asset depreciation expense. This will be used in determining the owners return from the business. Market Value of Property Input the estimated market value of property owned by the business. Property values are considered stable over the forecast period and no depreciation is allowed for. This forms a component of the total business investment. Other Investment in Business This is the calculated value of any other investment made in the business. It consists of operating capital and goodwill. This forms a component of the total business investment. This amount will be adjusted in-line with your Valuation Analysis.
Question and Answer Item 2058505 - Browse All Question and Answer Items
Q: What type of investment return calculation is utilized? (midpoint deitz, modified deitz, dollar weighted return, other)?
A: Investment analysis applies basic annual return calculations and converts these to Equivalent returns. Analysis details and formula applied are included in the Analysis section of the Help file https://bizpep.com/uinvest.html .
Question and Answer Item 2058356 - Browse All Question and Answer Items
Q: Does the data have to be put in manually or can spreadsheets be uploaded. If something can be uploaded, can multiple different portfolios be done with the click of a button?
A: Data entry is manual, inputs are minimal. Multiple investments can be analysed and saved. You can fully review the software and inputs required at https://bizpep.com/uinvest.html .
Question and Answer Item 2058357 - Browse All Question and Answer Items