Business Valuation Spreadsheet

SBDC Valuation Analysis Program

This program uses various techniques to help small businesses look at various approaches to valuation for a potential purchase or sale of a small business.

Business-Valuation-Spreadsheet-1.xlsx (47 downloads)

 

Each technique has a separate worksheet, and a final worksheet prepares a summary using all of the techniques. The Capitalized Adjusted Earnings approach and Discounted Future Earnings approach are standard valuation techniques employed in SBA lending, and utilize the methodology described in the SBA’s Standard Operating Procedures (SOP) for lenders. The Business Valuation Model uses a fair market valuation of assets method, and is provided courtesy of John Nelson III, owner of the Capital Connection.

The SBDC assists clients in putting their data into this format, and makes no guarantee or claim to the accuracy of the numbers. This information is typically “internal” in use by owners of a small business, and is not meant to be shared with others or used as the sole means of determining the value of a small business.

The input process can begin by completing each sheet, left to right, by inputting data into BLUE fields only. The black fields are not protected, and the user is warned to input over them at the peril of destroying formulas and making the program unusable as originally intended.