New Justification for Purchase Price Software Program
From the same company that brought you the first Business Evaluation software program and started the software appraisal industry in 1986. Updated yearly, it is still the number one program for the Business Brokerage Industry.
Want a quick and easy way to determine if the asking price is realistic?
This is a great software program to install on your computer desktop. You can easily enter the asking price, down payment percent, cash flow and terms that are normal for the industry and within seconds you will get:
A Reasonability Analysis After Debt Service that shows:
A Reasonability Analysis After Debt Service and Management Compensation that Shows:
Ratio Analysis of:
Price to Earnings
Price to EBITDA
Price to Revenue
Here is a great scenario of how the profound application of our new Justification for Purchase Test can work for you:
Are you confident answering this question without doing a full appraisal?
With the BES Justification for Purchase Test you can quickly input the Asking Price, Cash Flow, normal financing terms (or customized) and what your client needs as compensation. This will allow you to give a credible answer that will help your client determine if the price is reasonable.
The answer could be either of the following:
Either answer makes you a professional and you are giving your client an accurate answer guaranteed to keep your client and yourself out of a disaster.
THREE EASY WAYS TO ORDER:
To order by phone contact Kris Jones at BES: 281.337.1919 or you can e-mail him at Kris@BESappraisals.com
Justification for Purchase Test Uses
To determine if the Seller’s asking price is Realistic.
To determine if another Broker’s Listed price is Reasonable
To determine if your own valuation is Reasonable.
To quickly determine if the business can be financed by the bank
To justify to the Loan Committee that the Debtor can make a reasonable salary that covers his/her living expenses, pay the debt service, and have a return left over for bad times.
To determine if the business owner’s value of the company makes sense or does he/she need an appraisal.
To determine if the business owners value of the company makes sense or does he/she need an appraisal.
A moral duty to make sure that your client is truly covered for the value of the business.
The Justification for Purchase Test does not value a business but tells you if the value given to you at least makes sense.
In order for a value to be reasonable, it must enable whoever buys the company the ability to draw a Management Salary that pays them a fair wage for doing their duties. It must allow the buyer to pay Debt Service and give a return on the total investment that is at least reasonable for the risk of buying that business. Also, it should give a return on the down payment that will satisfy the buyer’s expectations of when he or she can pay off the business.