How To Complete A Valuation In DealBuilder

How to perform a quick valuation using the DealBuilder Platform

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

See video below if you are looking for more details on using the Pro Forma tool in the Valuation section.

When using the projection tool for YTD figures, ensure you hit the pencil icon and enter in the end date corresponding to the YTD statement. Otherwise the system won't be to apply the automatic math.

How to Complete a Valuation in DealBuilder

Key Steps

  1. Open the Proforma tool by clicking on the dollar sign icon in the left-hand column.
  2. Enter data in the income statement page, including a straight-line year-to-date projection for the desired year.
  3. Normalize the financials to get to seller's discretionary earnings and calculate adjusted EBIT.
  4. Filter comps by revenue to determine the multiple earnings they were selling for.
  5. Adjust valuation settings by selecting the appropriate NACS 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. Utilize the Proforma 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.

Tips for Efficiency

  • Utilize the Proforma tool's features to import data, set growth rates, and project future financials efficiently.
  • Experiment with different scenarios to understand how changes in data points affect valuation.
  • Collaborate with team members to ensure accuracy and discuss any specific comps needed for a more detailed analysis.

Caley Hui

Deal Manager