BVX® Overview

Summary

Business ValueXpress® (BVX®) is a Corporate Finance tool that provides objective valuation and deal structure analysis in buying and selling of businesses. BVX® is an interactive, intuitive, and easy-to learn program that performs valuations in seconds.

BVX® is designed to help Buyers of businesses, Sellers of businesses, Accountants, Attorneys, Bankers, Business Brokers, Mergers & Acquisition (M&A) Advisors, Financial Advisors, and Business Consultants. BVX® adds objectivity to business valuation, deal structuring and the M&A transaction process.

BVX® determines the maximum business value for the Seller while minimizing the Buyer’s equity. Its proprietary valuation approach is based on the following BVX® definition for the value of a firm.   

 

Willing Buyer, Willing Seller

“Value of a firm is the Equilibrium of Price, Terms, and Deal Structure that satisfies the needs of all parties to an M&A transaction.”

The above approach, called the WBWS method of valuation, is a departure from the conventional valuation methods that are generally silent or lack clarity on the terms and deal-structure associated with business value.

Hence, Price, Terms and Deal Structure are interdependent. BVX® determines the optimal business value by satisfying the requirements of the five claim holders to the business cash flow. These claim holders are: a) the Seller, b) the Buyer, c) the Business, d) the Lenders, and e) the Tax Authority. 

 

Valuation & Deal Applications

BVX® provides two tools in one program:

1. As a valuation tool it provides BVX®  Best Value. 

2. As a deal structure tool it interactively provides financial performance of the business and Buyer’s ROI (Return On Investment). 

Both are useful for simple transactions with no bank debt to complex deals involving mezzanine financing, balloon note, deferred payments, and over advance loans.  

BVX is designed for small and medium size privately held businesses; however, it can also be used for large corporations and public corporations. BVX® determines the operating value of the business, which is often called the “Enterprise” value. “Equity” value of the business can be calculated by adjusting for the excluded  non-operating assets, the non-operating liabilities, and the debt obligations. 

(See Price, Balance Sheet, & Profit). 

 

Satisfying Deal Constraints

Financing of the transaction and creative deal structures play a critical role in BVX® valuations. BVX® differentiates business value depending upon purchase price allocation, buyer synergy, and the acquisition method (specifically between the “Assets Purchase” and the “Stock Purchase” acquisition method).

 

Proprietary Technology

BVX®  uses proprietary methodology that involves decision-making algorithms and use of optimization techniques to satisfy the  needs of all parties to an M&A transaction. BVX® does not use any market data, nor does it use any known valuation formulas, or methods.

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Elevate your Practice

M&A Advisors & Business Brokers

• Pre-screen sellers

• Develop ideal buyer profile

• Manage buyer/seller expectations

• Analyze LOI & deal structures

• Work with lenders

• Avoid deal crashes

• Recover cratered deals

• Quantify synergies

Appraisers, Valuators & Accountants

• Sanity check of a full report valuation

• Cash Value vs. Leveraged Valuation

• Buy-side advisory work: structure and what-if analysis

• Reinforce FMV analysis with justification of purchase

• Asset vs. Stock purchase valuation

• C Corp vs. S Corp valuation

Exit Planners & Consultants

• Determine trade-offs between growth, profitability, and working capital

• Determine impact of gains in productivity and well-managed CapX

• Quantify benefits of quality financials

• Quantify benefits of consistent profits

• Explain the impact of growth

Adhikari International, Inc. 175 Olde Half Day Rd, Ste 130, Lincolnshire, IL 60069 Phone: (847) 438-1657 | Fax: (847) 438-1835