The Value Range is an essential tool for business owners to understand how sales multiples function, how this effects the final value of their business and what their goals should be as they enter their exit readiness process.
This tool will help demonstrate where the business is likely placed within the relevant multiple range, based on their assessment results and a key financial metric (EBIT, SDE, Revenue etc). The metric chosen can be dictated by availability, by the industry the company is in or recommended by a broker.
Once you have selected and input your metric, you will need to input the Minimum and Maximum multiple range for the business in question. We recommend utilizing the previously mentioned "Get Multiple Data" document/service from the Value Gap, or simply utilizing the same figures you used in the Value Gap.
With these metrics input into the system, you will be able to review your estimated business value. This metric is created via using the multiples and financial figures provided to define the estimated low end and high end range for the business, and then utilizes the scores from your Business Assessments to place you within this range (e.g. an average score of 60% will sit you at this position within the multiple range).
You can adjust percent score as required via the "ValueMax Business Score" slider, and click the "Reset score to actual" prompt to automatically reset the scores to the actual results from your Business Assessments. This will allow you to run some scenarios and help you understand some potential outcomes of your business exit.