Product Tutorial

The following topics provide brief instructions on purchasing and implementing our business appraisal toolkits.  We encourage new customers to read through the topics in this tutorial before purchasing one of our appraisal toolkits.  

1. Select the Appropriate Toolkit for Your Company [click to expand topic]

When selecting the appropriate business appraisal toolkit, you should identify an appraisal toolkit that is an approximate match for your industry. It is important to remember that no two businesses are exactly alike, and it is nearly impossible to find valuation data for companies identical to your own. 

If you have any questions, we would be glad to help you identify the toolkit that will generate the most accurate value for your business.  In some cases, we may suggest that you purchase a Custom Appraisal Toolkit, which is a business appraisal toolkit that we develop specifically for your unique business. 

2. Purchase and Download the Appraisal Toolkit [click to expand topic]

When you click on one of the industry-specific appraisal toolkits (in the beige box on the left side of this screen), you are taken to the product page for that appraisal toolkit.  Click the 'Add to Cart' button, and proceed with the checkout process. 

Once you complete the checkout, you will receive an e-mail with a link to download the electronic version of your business appraisal toolkit. When you click on the link, you will be taken to a secure section of our website where you will be prompted to download the toolkit. 

All our toolkits are published in high resolution PDF format, which requires Adobe Reader to view the contents.  Our toolkits may be viewed on both Windows and Macintosh computers. 

3. Income Capitalization Valuation Method [click to expand topic]

Each toolkit provides a "Capitalization Rate" that is unique to the industry.  To develop a value for a business using the Income Capitalization Method, you simply multiply net income by our industry growth rate, and divide the result by the capitalization rate for the industry, which we also provide. 

The following image is an example of how the income capitalization method is used in the appraisal toolkit:
 

4. Purchase Prices of Comparable Companies [click to expand topic]

Our appraisal toolkits include data from dozens of transactions in the industry. For each industry, we calculate the typical purchase purchase as a multiple of earnings, and we provide several years of data. The below image is an example of historical earnings multiples provided in each appraisal toolkit (Note that EBIT is an acronym for "earnings before interest and taxes"):


We then multiply the indicated earnings multiples times the historical earnings of the business to calculate the business value.  We will deduct outstanding debt from the result, for reasons more fully described in the toolkit:

5. Valuation Based on Comparable Public Companies [click to expand topic]

We research valuation data for numerous publicly-traded companies operating in each industry.  Each toolkit use the actual share prices and historical financial results of these publicly-traded companies to identify relevant valuation metrics.  The below image is an example of how the historical value of publicly-traded companies are shown in the appraisal toolkit (Note that EBIT is an acronym for "earnings before interest and taxes"):


Through example, the appraisal toolkit shows how to use the actual earnings of the business and the earnings multiple of the public companies to generate a value: 

6. Contact us for One Hour of Free Support [click to expand topic]

We now offer up to one hour of free support with each purchase.  We understand that every business is unique, and there may be some circumstances that require expert counsel.  For instance, we can provide guidance in the following areas:

• How to value a business with exceptionally high growth
• What do do if the valuation methods generate highly different results
• How to structure a buy/sell agreement
• When discounts for lack of control (e.g. minority discounts) should be used

We are happy to answer any valuation-related question, and we can help if you are having problems utilizing the methods included in the appraisal toolkit.  We have performed valuations of dozens of companies, and we've seen a lot.  Each analyst possesses finance credentials, and is qualified to address virtually any valuation-related question you may have. 

To get the most out of the free hour of support, we suggest that you first work through the valuation methods provided in the appraisal toolkit before scheduling time to talk with us. 

As of December 2011, we now have on-call analyst support seven days a week.  To schedule your free hour of support, contact us via e-mail at support@equitasvaluation.com. Please include a few times that work best for your schedule, and we will confirm with an available time and calling instructions.