: tools & methods for small businesses

There are lots of ways to do valuation – from the rigourous  bring-in-the-accountants approach to the back-of-the-envelope scribbling based on revenue and a bit of Kentucky Windage.  And, predictably enough, a whole lot of free (or inexpensive) software tools to walk you through a process.

In this last group is the (free) valuation service provided by BizTrader. ( http://www.biztrader.com/valuations/financial )  

4 clumps of data need to be entered:  contact info, P&L (revenue net income, owner’s compensation), Balance Sheets (assets, liabilities) and Qualitative Risk Assessment.  15 or 20 minutes work and you get back a report that gives you, at the very least, a solid estimate.  For less than a half hour of work, a pretty good deal!