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Items selected where Question includes investment or Answer includes investment

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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?

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 .

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 .

Q: I would like to know the formula for the Other Investment in Business. My Owner Cash Flow is \$3.3mil and the other investment in business value is at \$9.9mil. Where is the operating capital and goodwill coming from? Thanks!

A: The Total Investment in the business and calculated Expected Valuation is the sum of Replacement Value of Business Assets, Market Value of Property, and Other Investment in Business. Or conversely the Other Investment in Business = Expected Valuation (as calculated based on return and required return on investment %) less Replacement Value of Assets less Value of Property. Basically this is saying that at the Expected Valuation there is an amount paid that is not covered by hard assets ie goodwill and other capital investment and this is the other investment in business. This value is automatically adjusted in line with the valuation. This is outlined in the mouseover comments for the the Other Investment cell. Hope this helps.

Q: When I enter the inventory amount in Material and Supplies - the higher I go with this number the lower the equity goes - which does not make sense to me.

A: That is correct. As Material and Supplies costs increase profit decreases (assuming everything else is constant) so to achieve the required Return on Investment the Valuation (and Equity) decreases. This is basically saying the lower the profit the lower the value.

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