How Much is Your Business Worth?
There are seven methods to value a business
as approved by the IRS. With the advent of the Internet other methods have also
been developed to assist with these special types of business. If you business
is exclusively and Internet Business click here.
For standard of mixed business type use these guidelines.
Chicago Method is used to value venture type businesses by Venture Capital firms.
High risk ventures are usually valued
using the First Chicago Method that evaluates probabilities of success (IPO),
the sideways scenario, and the failure scenario (liquidation). This
method uses a high risk adjusted discount rates and embodies many assumptions.
We specialize in the First
Chicago Method as a means of determining the pre and post investment values for
entrepreneurial (pre-IPO) business investments.
- Venture Planning provides valuations
for any of the above listed IRS scenarios. For a valuation of your
existing or startup business contact
- Venture Planning Associates
also provides valuations of sole proprietorships, partnerships, or corporations
with one class of stock, and provides comparisons with industry standards.
- For a Sample Valuation Report
showing all methods and a sample valuation spreadsheet, Click
to Value a Business
When Buying or Selling
- When Raising Venture Capital
- Payment of Estate taxes
- Buy/Sell Agreements
- Payment of Gift Taxes
- Shareholder Disputes
(maximum number of years possible
- Balance Sheets
- Income Statements
- Cash Flow Statements
- Business Comparable's if available
- Capitalization of Earnings
Dividend Paying Capacity
- Excess Earnings: Return on
- Excess Earnings: Return on Sales
Discounted Cash Flow
- Discounted Future Earnings
- Combination Method Weighted Average of All Types
Is Your Private Business for Sale?
us for information (888.404.1212) or eMail
us on how you can make the sale of your founders stock at exit a tax free
or tax deferred event. This simple technique would have saved us over 25% in taxes
at the sale of one of our companies had we known in advance. We can also provide
some money making tips for those of you just completing and IPO.
goal is to provide you the best funding tools available and to get your
Venture Planning Associates,
of the hundreds of sites offering business plan products and services, your VenturePlan
site is among the best, if not the best. "
Mike Rischard CPA, President, Agilecor
we received first round funding ($5 million) the VC firm asked us to show
how our financial models were created. They wanted to use OUR TEMPLATE (which
we developed from the 7 Venture Capital Reports) to help them evaluate alternative
scenarios for their portfolio companies!" Michael
.Lay, CFO, e-Commerce Internet Company
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