Shorts launches new interactive Business Valuation Tool

The Shorts Corporate Finance team has unveiled a brand new, interactive, and free-to-use Business Valuation Tool.

The new tool is a calculator which uses the financial information of a company to provide a high-level estimate of the company’s market value, while also generating a series of bespoke tips, considerations, and strength/weakness analyses for the company.

For business owners, the current value of their business is vital information - particularly in helping them decide if it is time to consider exit planning options.

How the Business Valuation Tool works

The data-crunching tool generates a unique business valuation report using information like turnover, EBIT (Earnings Before Interest and Taxes), assets and liabilities, as well as operational, strategic or market factors that may influence the valuation or readiness for sale.

The new tool provides a monetary estimate of the value of a business, but also actionable advice, insights and analysis based on the information submitted.

• Is there a possibility of improving recurring revenue and creating more certainty over future revenues?
• Do you have a good blend of customers? In most cases the less concentrated your client base, the greater chance of a higher valuation.
• Does the development of any new products change your projections going forward?
• Do you have a good level of shared responsibility, and are roles well spread?

Importantly, the estimate provided by this valuation tool is just that: an estimate. The valuation is intended to be a high-level estimate for discussion purposes only, based on limited information and in no way constitutes a professional valuation, nor should it be considered in any way a substitute for a formal valuation exercise.

Who is the new valuation tool for?

There are various factors that could significantly affect the accuracy of the valuation generated by the tool. It is intended to be used by established businesses. If a business is in its infancy, is high growth, or operating in a specialist sector, we would recommend speaking directly to a Corporate Finance specialist.

What does the Shorts team say?

Andy Ryder, Corporate Finance Partner at Shorts, sees the new Valuation Tool as an exciting opportunity to educate business owners on what influences a business valuation, as well as a valuable starting point for business owners or shareholders looking to sell.

“We’re very excited about our new Business Valuation Tool and believe it is a valuable resource for a variety of business owners and shareholders who may be planning their exit, whether that is immediate or several years down the line.”

He adds, “The tool is not a substitute for expert advice from a qualified specialist, and we strongly encourage anyone seeking a precise valuation, bespoke readiness for sale advice, or any other corporate finance advice, to book a consultation with our team.”