General Valuation (Document Bundle)

These spreadsheets will help you with small or medium business valuation. There are all sorts of tools included in here that give methodology and reasoning along with calculations to come up with a range of values that can be applied to a business. These methods are all quantitative in nature and can be driven by actual financial statement data that is pulled out or from a financial model that is forecasting future expected cash flows of a given business.

Note, these are just to be used as rules of thumb and act more as a back-of-the-envelope style template that is more useful internally rather than externally. It can be useful for business acquirers that want to quickly evaluate a new business or someone that is trying to understand what their own business may be worth.

In general, the valuation methodologies available with these documents center around two things: 1) Applying a multiple to annual EBITDA, SDE, or revenue 2) Forecasting future cash flows and discounting them back to the present value.

There is not a single end-all business valuation methodology that is correct. Many approaches are used out in the real world and no matter what method is used, the result is always going to be some sort of average or midpoint estimation that is derived from a range of low to high valuations.

With these sheets, an instruction video is included (link is in each file) and they are all fully editable and unlocked so you can drop your own data into the input cells and the output values will automatically update.