A unique valuation and deal-structure software that provides highly accurate results while reducing guesswork. BVX® is interactive and easy to use. It allows what-if analysis like Cash vs. Seller-financed price, Stock vs. Asset price, price impact of financing terms and deal structures, value of a strategic buyer etc. BVX® uses proprietary algorithms and advanced mathematics. Available as:
A Windows-desktop based application
A no-install, easy to launch version of BVX
A seamless valuation tool and a deal structure tool in one product
Business ValueXpress® (BVX®) provides two powerful business valuation tools in one software product; a Valuation tool and a Deal Structure tool. A single common screen is used for doing valuations, and for analyzing deal structures and “What if” scenarios.
As a valuation tool, BVX® determines the “Best Value” that satisfies the needs of all parties to a transaction. The “Best Value” is where most transactions occur, because it is not only the highest value for the seller, but it meets the expectations of all other parties to the transaction.
The Deal Structure capability of BVX® is unmatched in its flexibility, ease-of-use, instantaneous results, and guided feedback.
What would happen to cash flow and ROI, if the offer were increased?
What should be the price decrease if the financial markets tighten-up?
What are the economic implications of changing an Asset offer to a Stock offer?
What happens if growth projections do not come true?
What happens if the profit is less than expected?
If any input is changed, after determining the "Best Value", BVX® automatically changes into an "interactive" mode. All outputs are instantaneously changed, as inputs are changed. For example, if the deal structure is changed from an Asset Purchase to a Stock Purchase all outputs (including Buyer ROI, income statement, balance sheet, cash flow, etc.) are changed automatically. Similarly, if the deal is modified for price, or equity, or growth assumption, or lender financing terms, all results are changed automatically. BVX® uses intelligent color-coding to flag areas where the needs of the parties are not satisfied.
BVX® performs 500,000 to 10+ million calculations per business valuation
Business ValueXpress® (BVX®) does not use any formulas, nor does it use any market data, nor does it use any known valuation methods. How does then BVX® determine the valuation of a business?
BVX® uses random numbers generators to start with a set of numbers for the selling price, the buyer equity etc. It then calculates a complete set of financial statements for these assumed set of numbers. Then it tests to see if the financial statements satisfy the needs of all parties to the M&A transaction. If all needs are not satisfied, BVX® changes the starting set of numbers and tries again. It goes through this iterative process until all requirements are satisfied and the selling price is the maximum. The number of calculations can vary depending upon the random starting position of the key variables, and depending upon the complexity of the valuation. Typically, BVX® would perform 500,000 to 10+ million calculations per valuation. For further discussion on this see BVX® Methodology.
BVX® performs firm-specific valuation
The fundamental premise of BVX® is that the valuation of a company is company-specific, not just industry-specific.
Business ValueXpress® (BVX®) has been used in many different industries for valuation of small mom-and-pop businesses which require no bank financing, to large privately held business requiring multiple layers of financing. Even though BVX® inputs are independent of the size and the type of the business, its valuations equal actual market transactions. Why are BVX® valuation results so accurate? This is due to the fact that BVX® relies heavily on the operating characteristics of the business, and the ability to get financed; these factors presumably reflect its size, industry, and overall health of the economy.
For example, lets us say there are 3 companies manufacturing Grabule, a health care product. Assume that each one of them makes the same profit, has the same growth opportunity, and can get the same financing terms. One company sells to the drug stores, the second to the hospitals, and the third to the retail customers with credit cards by phone. BVX® will come with a different valuation for each of the three companies; conventional methods will not.
$600, annual-license based subscription. License includes support, upgrades, training.