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Q: What business valuation value do I take from your software to tell my seller?
A: On the valuation page an Optimistic, Expected and Pessimistic Business Valuation are provided. This is a valuation range high to low. The mid range Expected value can be considered the most likely or average scenario ie fair value / price. Most business purchases are a negotiation so you may wish to offer lower vales initially ie a Pessimistic value. Initially the Applied Valuation equals the Expected Valuation this is simply provided so you can adjust and play with the calculated fiqures to determine possible impacts on forecasts etc ie what if I purchased for $x in which can you would input $x as the Applied Valuation to see the result? For a straight valuation you do not need to change the Applied Valuation. In general your target purchase price would be the Expected Valuation amount. If negotiating your initial offer would usually be below this amount. Hope that helps.
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