Following is a comparison of Online Business Valuation:
| Purely Market Based | Finance Based | ||||||
|---|---|---|---|---|---|---|---|
| Valuation Type | Valusource | Alternative 1 | Alternative 2 | Alternative 3 | |||
| Online Business Valuation | Free | Basic | Pro | Business | Advisor | Business Owner | |
| Price | |||||||
| Free Valuation (Dashboard) | |||||||
| Monthly Subscription (less if paid annualy) - Advisor | $249 | NA | $299 | NA | |||
| Credibility | |||||||
| Years in business (as of 2018) | 30 | 4 | 4 | 4 | 7 | 7 | 3 |
| Products Won CPA Practice Advisor Readers Choice Award | |||||||
| NACVA & ISBA Valuation Associations use products for training | |||||||
| Business Model | |||||||
| Branded website -option | |||||||
| # of Different Companies Per Year | Unlimited | 1 | 1 | 1 | 20 | 60 | Unlimited |
| # of Reports per year (single company) | Unlimited | 0 | 3 | Unlimited | 1 | 1 | Unlimited |
| Flexibility | |||||||
| Can upgrade to pro software/data | |||||||
| Services | |||||||
| Referral to network that provides Certified Valuators | |||||||
| Private label product | |||||||
| Affiliate (Referral) program | |||||||
| Risk | |||||||
| User provides min sensitive / proprietary company data | |||||||
| Usability | |||||||
| Built for NON Financial Professional | |||||||
| Does not require 3 years financial statements | |||||||
| INPUT Designed for NON-financial professional | |||||||
| REPORT Designed for NON-financial professional | |||||||
| TRANSPARENT data, analysis, theory, approach | |||||||
| Guided questions | |||||||
| Number of inputs (lower is better) | 41 | 54 | 54 | 54 | 57 | 57 | 92 |
| Number of drop-downs/sliders (more is better) | 18 | 0 | 0 | 0 | 14 | 14 | 6 |
| Valuation Analysis | |||||||
| Valuation Input - Does NOT require | |||||||
| Current year income statement (profit & loss) | |||||||
| Current year balance sheet | |||||||
| 1 - 3 years of income statements | |||||||
| 1 - 3 years of balance sheets | |||||||
| Does not rely on just financials | |||||||
| Requires minimal financial statement Input | |||||||
| Valuation Methods | |||||||
| Multiples | |||||||
| Asset Approach | |||||||
| Market based (not Finance Professional based) | |||||||
| Use of Comparable transaction data in valuation | |||||||
| State they use comparables | |||||||
| Provide individual comparable transactions in report | |||||||
| Vendor owns largest and oldest transaction database | |||||||
| Stand-Alone Comps report | |||||||
| Valuation Methodologies | |||||||
| Asset Value | |||||||
| Basic Method | |||||||
| Capitalization | |||||||
| Critical Factor | |||||||
| Debt Capacity | |||||||
| Industry Method (show comps) | |||||||
| Weighted Factors | |||||||
| Calculates Asset Value | |||||||
| Calculates Equity Value | |||||||
| Databases used | |||||||
| IBA Market Data (world's largest comps database) | |||||||
| Provided reports | |||||||
| Number of pages (more detailed) | 43 | 16 | 16 | 29 | 29 | 15 | |
| Customizable in Word | |||||||
| SHOWS comparable transactions | |||||||
| Methodology explanation | |||||||
| Final Valuation | |||||||
| Calculates most probable selling price | |||||||
| Summary/Conclusions | |||||||
| Does NOT contain a lot of fluff | |||||||
| Report SHOWS multiple methods | |||||||
| Number of valuation methods shown in report | 8 | None | 5 | 5 | 1 | 1 | 3 |
| Support | |||||||
| Telephone | |||||||
| User guide as part of software (help section) | |||||||
| Training videos | |||||||
| Chat button | |||||||
| Provides support from credentialed valuators | |||||||
All information is based on publicly available information as of February 2018