Comparison
Following is a comparison of Online Business Valuation:
Purely Market Based | Finance Based | ||||||
---|---|---|---|---|---|---|---|
Valuation Type | Valusource | Alternative 1 | Alternative 2 | Alternative 3 | |||
Online Business Valuation | Free | Basic | Pro | Business | Advisor | Business Owner | |
Price | |||||||
Free Valuation (Dashboard) | |||||||
Monthly Subscription (less if paid annualy) - Advisor | $249 | NA | Starts at $299 | NA | |||
Credibility | |||||||
Years in business (as of 2019) | 33 | 5 | 5 | 5 | 8 | 8 | 4 |
Products Won CPA Practice Advisor Readers Choice Award | |||||||
NACVA & ISBA Valuation Associations use products for training | |||||||
Business Model | |||||||
Branded website -option | |||||||
# of Different Companies Per Year | Unlimited | 1 | 1 | 1 | 20 | 20 | Unlimited |
# of Reports per year (single company) | Unlimited | 0 | 3 | Unlimited | 1 | 1 | Unlimited |
Flexibility | |||||||
Can upgrade to pro software/data | |||||||
Services | |||||||
Referral to network that provides Certified Valuators | |||||||
Private label product | |||||||
Affiliate (Referral) program | |||||||
Risk | |||||||
User provides min sensitive / proprietary company data | |||||||
Usability | |||||||
Built for NON-valuation Professionals | |||||||
Does not require 3 years financial statements | |||||||
INPUT Designed for NON-valuation professional | |||||||
REPORT Designed for NON-valuation professional | |||||||
TRANSPARENT data, analysis, theory, approach | |||||||
Guided questions | |||||||
Number of inputs (lower is better) | 41 | 54 | 54 | 54 | 57 | 57 | 92 |
Number of drop-downs/sliders (more is better) | 18 | 0 | 0 | 0 | 14 | 14 | 6 |
Valuation Analysis | |||||||
Valuation Input - Does NOT require | |||||||
Current year income statement (profit & loss) | |||||||
Current year balance sheet | |||||||
1 - 3 years of income statements | |||||||
1 - 3 years of balance sheets | |||||||
Does not rely on just financials | |||||||
Requires minimal financial statement Input | |||||||
Valuation Methods | |||||||
Multiples | |||||||
Asset Approach | |||||||
Market based | |||||||
Use of Comparable transaction data in valuation | |||||||
State they use comparables | |||||||
Provide individual comparable transactions in report | |||||||
Vendor owns largest and oldest transaction database | |||||||
Stand-Alone Comps report | |||||||
Valuation Methodologies | |||||||
Asset Value | |||||||
Basic Method | |||||||
Capitalization | |||||||
Critical Factor | |||||||
Debt Capacity | |||||||
Industry Method (show comps) | |||||||
Weighted Factors | |||||||
Calculates Asset Value | |||||||
Calculates Equity Value | |||||||
Databases used | |||||||
ValuSource Market Comps (formerly IBA Market Data - world's largest comps database) | |||||||
Provided reports | |||||||
Number of pages (more detailed) | 43 | 16 | 16 | 29 | 29 | 15 | |
Customizable in Word | |||||||
SHOWS comparable transactions | |||||||
Methodology explanation | |||||||
Final Valuation | |||||||
Calculates most probable selling price | |||||||
Summary/Conclusions | |||||||
Does NOT contain a lot of fluff | |||||||
Report SHOWS multiple methods | |||||||
Number of valuation methods shown in report | 8 | None | 5 | 5 | 1 | 1 | 3 |
Support | |||||||
Telephone | |||||||
User guide as part of software (help section) | |||||||
Training videos | |||||||
Chat button | |||||||
Provides support from credentialed valuators |
All information is based on publicly available information as of February 2018