Methodology
How Does ExitVision Work?
We've tried to design the ExitVision experience to be a compelling educational tool for small and medium-sized business owners. Some of the ways we've tried to deliver this are:
- Focus on simplicity and ease-of-use
- Importance of qualitative and quantitative factors in business valuation
- Instant and relevant feedback on each questionnaire response
- Resources and suggestions on how to improve your business valuation
- Access to advisors to help deliver and optimize the value locked in your business
- Regular updates to our valuation formulas and algorithms to improve our valuation performance and keep in tune with shifting markets
The ExitVision valuation questionnaire is built on a few premises:
- A privately held business is only worth what a buyer will pay for it, so the most meaningful valuation discussion is a sale-of-business discussion
- Take-home profit accruing to new buyers is the core quantitative metric that matters, and all other factors simply amplify or discount that core metric
- The market is always in flux, and so business valuations will frequently change even if the underlying business does not
What the ExitVision valuation questionnaire provides:
- An indicative valuation for profitable, small and medium-sized, privately-held businesses with a small number of related business lines (the vast majority of US & Canadian businesses!)
- Indicative cash value of a business at date of sale assuming a relatively simple transaction structure without a large earn-out or delayed payment
What the ExitVision valuation questionnaire does not provide:
- Valuation of non-core assets such as real estate or excess inventories
- Valuation of non-core liabilities such as litigation or outstanding environmental liabilities
- Valuations on start-ups, turnarounds or other outlier businesses that are oriented to extraordinary risk and reward expectations