$45.00 USD
Functionality of this valuation model (note the model has had a streamlined update based on customer feedback and is much easier to use):
- Consider up to 5 years of operational activity.
- All cells that can be changed are in blue text with yellow shade.
- Allows for a subjective weighting of each years' EBITDA.
- Gives enterprise and equity values based on weightings of each year's EBITDA.
- Includes a sensitivity analysis for EBITDA multiple.
- Drills down to equity value by calculating any redundant assets less bank loans/liabilities to a 3rd party that need to be paid.
Excel is a really nice tool to use for so many different financial models. Normally, my templates involve projecting out cash flow over time but this particular valuation is more about taking the past cash flows and assigning a value to them.
The most subjective parts of this would be the weighting of each years' EBITDA and then the multiple itself. Note that all the multiple is saying is how many years are you paying for now. This assumes the business will keep earning somewhere around the normalized EBITDA that has been calculated with the weighted averages.
The buying party would obviously hope that this increases and the seller is hoping that they can do more with the cash now rather than weighting for it to come through the normal course of business.
It is a battle here to try and find a price both party's agree on and many more factors are there to consider besides what you see in the excel template.
Disclaimer: I am not a financial advisor nor hold any license as a Certified Valuation Analyst. This is just my way of helping individuals see what they might get from their business at a basic level. I am not to be held liable for any financial gain/loss that comes with the use of this valuation template in Excel.
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