Watch as Morgan walks through the steps of starting a project, entering basic information, and inputting the income statement. He also explain how to calculate net income and move on to the normalization process. Finally, he shows how our valuation software works by pulling comps from deal stats and arriving at a business valuation

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How to Complete a Valuation in DealBuilder

Key Steps

1. Open the valuation tool by clicking on the dollar sign icon in the left-hand sidebar
2. Enter data in the income statement page.
3. Normalize the financials to get to seller's discretionary earnings and calculate adjusted EBITDA.
4. Filter comps by revenue to determine the multiple earnings they were selling for.
5. Adjust valuation settings by selecting the appropriate NAICS code and updating the max valuation to observe the impact on valuation.
6. Review the list of comps included and adjust the minimum number of comps to impact valuation.
7. Weight the financials based on growth projections for the company.
8. Optional: utilize the Pro-Forma tool to import a base year, set a growth rate, and run calculations for future years.
9. Copy calculations to project financials for the following year.
10. Incorporate future years' data points to project out further financials.
11. Make adjustments to revenue, expenses, and other data points as needed for accurate projections.
12. Explore different scenarios and play around with the tool to refine valuation calculations.

Notes

• Ensure data input is accurate to avoid errors in projections and valuations.
• Review and double-check all calculations before finalizing projections.
• Be cautious when making significant adjustments to data points, as this can impact the overall valuation.

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