Free Small Business Valuation Calculator |
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This business valuation calculator is
designed as a research tool only to provide small business owners with a
free and confidential (no personal
info required) instant business valuation
result that can be
used to help determine an approximate asking or
sales price when valuing a small business for sale. This business valuation calculator is designed as
a self-help research tool for independent uses only. All
calculation results are hypothetical and for example purposes
only.
Note: This calculator is not intended to provide investment
advice, or provide a firm business valuation, or replace an
independent business appraisal provided by a qualified and
professional valuation expert,
Business Appraiser or
Business Broker
in your market or area.
Disclaimer You
can also request a free and confidential preliminary
business
valuation consultation here from a professional
appraiser. |
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One of the most widely used
methods of determining the value
of a small business is based on
the recasting or adjusting of a
business's profit and loss
statements to determine the
adjusted net cash flow for the
business’s owner-operator. This
term (Adjusted Net Cash Flow) is
also commonly referred to as the
“Owners Benefits” or “Seller’s
Discretionary Cash Flow”.
Regardless of the term used, the
goal of the process is generally
the same: To determine or
demonstrate the true earning
power of the business (for the
business’s owner-operator) by
adjusting or adding back to the
pre-tax net profit the owner’s
salary, discretionary expenses,
perks, depreciation, and
interest expenses.
To get started, please
use and enter the following
values listed below from your
most recent 12 month or year end
business income or profit and
loss statement. Keep in mind
that you should only enter or
add back items that have been
expensed on the statement.
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Enter values from most recent business Profit and Loss (Income) Statement. Enter Value in One of these
fields, not both |
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Enter Net Profit Only if you Realized Profit or Gain: |
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Enter Net Loss Only if you Realized a Loss: |
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Owner's Salary Or
Compensation: |
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Enter Owner's Salary (Corporations Only): |
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Enter Manager's Salary (Absentee Owned Business's Only): |
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Business Depreciation and
Interest Expenses: |
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Enter Depreciation Expense: |
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Enter Debt or Loan Interest Expense |
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Owner's Discretionary
Expenses and Perks: (Must be expensed, and paid
for by the business) |
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Enter (total) Personal Insurance Expenses (Health, etc...): |
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Enter (total) Personal Auto Expenses: (Lease, gas, etc..) |
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Enter Personal Travel Expenses: |
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Enter Entertainment Expenses: |
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Select Most Appropriate Business Category: |
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Select Years Business Has Been Established: |
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