Questions & Answers

Q: I recently purchased a non-commercial license to use your Business Valuation Software in order to value several of my business interests. I was greatly impressed and am considering the possibility of using the software commercially. Can you please provide detail of the differences between the two products. for example, does the header "Business Valuation Model Excel 32" disappear in the commercial reports? Is it possible to upgrade to the commercial version and receive credit for what was paid recently?

A: Thank you for your feedback. You can upgrade from a Non-Commercial license to a Commercial license at https://bizpep.com/upgrade.html . This allows you to upgrade and receive a credit for existing licenses. Upon request with a Commercial license we can provide an unprotected software version allowing you to view the formula applied to enhance your knowledge of software operation (macros remain protected) and undertake minor refinements (ie headings etc). Please note that Bizpep retain full copyright and intellectual property rights at all times.

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Q: Is your software suitable for a book of life insurance / mutual Fund business, in order to determine the selling price?

A: The design and methodology of the Business Valuation model makes it applicable to any business. Because it uses market indicators to develop a forecast and the valuation is based on the forecast it can be applied to any business. It is available free for 7 day evaluation so you can give it a test run from https://bizpep.com/businessvaluation.html .

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Q: Does this model allow one to determine the value of a business you would like to sell; i.e., the suggested selling price range?

A: Yes, this is one of the things it is designed for (as well as buying). When you input relative indicators a forecast is generated. From this a valuation range is determined. If you are selling you should approach it from a generic buyers perspective but use your industry/business knowledge assist in developing the relative indicators. Once you have a valuation range use the valuation model to substantiate your selling price to the potential purchaser, also considering an individual purchaser there maybe areas where they can add additional value (ie the business is worth more to them). For External Earnings it is probably best to use an indicative value for the type of person that would consider buying your business (possibly someone like yourself?). However keep in mind that particularly if you have a lifestyle business the buyer may consider a smaller salary acceptable than they may achieve otherwise.

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Q: Business Valuation - Does this tool allow one to assess a business such that you can derive at a offering price for a small business. For example, I am considering a business wherein the asking price is $150,000 and the cash flow is $80,000. The way I interpret your model, this business would have a negative value to me if I can make $80,000 on the outside.

A: Yes the Business Valuation Model was originally designed with small business in mind. If you can earn $80k without investing (risking) any capital then a business that only returns $80k but costs $150k is worthless to you because you are getting no return on your investment (you would be better of putting it in the bank). Having said that you need to look at the return over time ie the 3 year forecast. So input your forecast variables to gain some insight into what returns are possible from the business. If returns have the potential to double over the forecast period then it becomes a different story. The valuation developed by the model considers the 3 year returns when developing a valuation. Also if there is a lifestyle component in the business then possibly you are prepared to accept a lower return?

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Q: I just downloaded the Business Valuation Model on a trial basis and I want to purchase the model but I have a question. There are a few things that I would want to change on the model. Some items don't make sense for our business and other items I would like to add. Can I purchase a version of the model that is not protected so I can customize the program to fit my needs?

A: With our standard Non-Commercial license you can change the labels that appear in blue cells on the input sheet and these changes will be passed throughout the software. We also offer Commercial licenses and upon request with a Commercial license can provide an unprotected software version allowing you to view the formula applied, access cell contents to enhance your knowledge of software operation (macros remain protected) and undertake minor refinements (ie headings etc). Commercial licensing fees are 3 times Non-Commercial licensing fees. To access the source code of our software including the visual basic code (macros) a Source License is required. This license allows you to modify and adapt all components of the software to meet your specific needs. Source licensing fees are 3 times Commercial licensing fees. Source Code License details are available at https://bizpep.com/SourceLic.html . Please let me know if a Source License is of interest and I can provide additional detail as required.

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