Skip Navigation
Corpfin.Net Blog
Our LBO valuation model estimates the current value of a business to a "financial buyer" that owns no other company in the business' industry and, therefore, expects all of its investment return to result solely from the future operations of the business being purchased. The amount a financial buyer is willing to pay for a business is based on the business' historical and forecasted financial performance and, in general, an LBO valuation represents the estimated minimum current value of a business since buyers who already own similar businesses (i.e., "industry buyers") will usually pay more for a given business than will a financial buyer.
Our LBO valuation model reports cover not only the business valuation and the details of the estimated purchase and sale transaction, but also the financial performance of the business before and after the sale. This feature makes the LBO model useful to both prospective business sellers and buyers.
To create an estimated LBO valuation of the business of your choice, spend approximately 1/2 hour online in a free WebEx meeting, one-on-one with a Corpfin.Net expert on the telephone and at the keyboard, and create, analyze and revise your estimated LBO valuation. In order to do the analysis, we will need you to provide us with at least one year's historical income statement and year-end balance sheet for the business to be valued.
We do not need to know the name or location of the business to conduct the online session; any historical financial statements faxed to us should have company identifiers blacked out. We will use your e-mail address as the name of the business (e.g., joeb@somemail.com) to insure total confidentiality.
During the online session we will, together, create a five-year strategic level financial forecast and analysis for the business being valued, including:
A multi-page narrative report describing the forecast results (Multi-Year Forecast Overview).
Forecasted primary financial statements - annual income statements, balance sheets and cash flow statements.
Several reports documenting the key assumptions underlying the forecast, and forecasted financial ratio data and statistics used by business managers, and banks and other providers of capital to evaluate financial performance.
Following the creation of the five-year forecast, we will create an estimated LBO business valuation and analysis based on the forecast and other assumptions. The output of the LBO business valuation process will include:
A multi-page narrative report describing the valuation methodology and results (Business Valuation Overview).
Documentation of the details of the theoretical sale of the business being valued (Business Valuation Summary).
Primary financial statements - annual income statements, balance sheets and cash flow statements - showing the actual and forecasted financial performance of the business prior to and after the theoretical sale.
Several pages of documentation detailing the key assumptions underlying the valuation, and actual and forecasted financial ratio data and statistics.
If you decide you would like to preserve the forecasts and analyses generated during your online session, please become a member of Corpfin.Net within three (3) days of your session and all of that information will be transferred to your online account at Corpfin.Net for your further review and revision. The cost of doing so is $250.00, which includes 60 days of product support from the date of membership. During your membership period you will have use of all of the models on the site. If you wish to remain a member after 60 days, the cost of doing so is $100.00 per quarter.
If you decide not to become a member of Corpfin.Net, the information developed during the online session will be erased and you will have absolutely no obligation to Corpfin.Net for the session.
Please enter your name, and a valid e-mail address and telephone number at which we can contact you to arrange a date and time for your free online session. We will contact you promptly.
If you would like to know about other free online sessions, please see Free One-on-One Online Sessions.
If you would like to distribute this page across the web, please click here
If you would like to send this page to a friend, please click here