Items selected where Question includes forecast or Answer includes forecast
Questions & Answers
Q: Hello, I am studying the merger of two small transport companies. I would like to know what excel sheets you recommend. And please explain how the service works. Will I be able to use the sheet with anyone?
A: Business Valuation https://bizpep.com/businessvaluation.html , Price Break Even Analysis https://bizpep.com/pricebreakevenanalysis.html , Profit Contribution https://bizpep.com/profitcontribution.html or Business Analysis https://bizpep.com/businessanalysis.html options will all provide valuable insight. The first 3 are spreadsheet based, licensed with an annual subscription and will be registered to the purchaser for use on multiple devices for the individual licensed email address recipient with unlimited use but not distribution.This means you can use them with others but not distribute them in licensed form. Business Analysis is browser based and combines the Business Forecast, Valuation , Break Even and Pricing Analysis in one package with a one time perpetual licence which fully enables application use on multiple devices for the individual licensed email address recipient.
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.
Q: Interested in the Commercial (or affiliate/reseller) pricing for programs as a consultant/coach. Specifically, Business Valuation Model, Forecast & Budget Builder, Pricing & Breakdown Analysis, Profit Contribution Model, and Decision Assistant Model.
A: We provide an affiliate program which may suit. This program provides a 30% commission for sales. Full details can be accessed at https://bizpep.com/affiliate.html This provides a high level of flexibility and is a simple means of initially establishing a revenue sharing arrangement. We also provide volume discounts for bulk license purchases for resale. For bulk license purchases in lots of 10 we can set up a reseller structure where Registration details/code can then be generated on an as required basis and distributed to your clients. This process allows you to receive margins on sales and control license issuing to your clients. To use this system you need to make a purchase of 10 or more licenses. Bulk discounts of 50% are available for volume purchases. Once an approved volume purchase transaction has been processed you will be issued with Registration Details for the total number of licenses. You can use these to register/upgrade software and issue individual client licenses. You can add additional licenses (in lots of 10) as required. If a reseller /volume discount structure is of interest please let me know the specific license titles, license type, and number of licenses required and I will provide further detail.
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.
Q: I'm looking for a consolidation tool too be able to combine our UK/US/Irish offices financials together to allow group wide reporting and forecasting. Can your software packages handle this style of request?
A: It is generally designed for small business and does not include consolidation functionality, however It could be developed using a consolidation linking spreadsheet.