Business Evaluation Systems

Overview

Business Brokers have relied on Business Evaluation Systems and its PC-based predecessor for over twenty years to quickly produce “brokers opinion of value” or “most probable selling price” reports. Business Evaluation Systems also incorporates data from both IBA Market Data and BIZCOMPS to include comparable transactions in the analysis and page report.

Why To Buy

Following are the main reasons you may wish to consider Business Evaluation Systems:

  • Provides a quick and easy way to value a business (most probable selling price) in less than 45 minutes with no financial/valuation background necessary.
  • Incorporates both IBA Market Data and BIZCOMPS data into the analysis and reports. (IBA and BIZCOMPS data purchased separately)
  • Allows you to charge $500 to $1000 per evaluation (33+ page reports). Some brokers give these reports to clients at no charge as a listing incentive.
  • Helps you to build credibility with both sellers and buyers by being able to quickly offer comprehensive business evaluations.
  • Helps you sell businesses for higher prices because sellers have solid and unbiased documentation that buyers respect.

How it Works

A step-by-step navigator leads you through the valuation process, backed up by detailed help files. Business Evaluation Systems also contains an expanded post-sale cash flow analysis, a return on investment analysis and a Discounted Cash Flow module that makes appraising rapidly growing businesses more accurate. You are able to produce a comprehensive report on a small business without being a financial professional.

Constantly improved and updated, Business Evaluation Systems is based on the same product built over two decades ago by George Abraham. Over 32 years, George Abraham valued more than 12,000 companies, both small and large. Mr. Abraham was one of the first to recognize that it was possible to create software for business brokers to quickly and accurately value businesses.

Features & Benefits

There are four main steps where Business Evaluation Systems helps you to value a small business:

  1. Answering questions about the business (print the questionnaire to give to the owner.)
  2. Review and assign weights to the evaluation methods.
  3. Structure the terms of the deal.
  4. Print the detailed and comprehensive 33+ page, customizable report in Microsoft® Word.

Screenshots

Following are screenshots that show some of the unique features of Business Evaluation Systems. Click image to enlarge

Seller Advantages

There are a number of powerful advantages for a potential seller to use Business Evaluation Systems including:

  • Confidence of Value
  • Knowing if or when to sell
  • Establishes Strengths and Weaknesses
  • Establishes the Seller’s Tax situation
  • Seller’s Appraisal, not the Bank’s
  • Less Negotiating with the Buyer
  • Less Negotiating with the Buyer’s Advisors
  • Keeps the Advisors from playing Appraiser

Business Evaluation Systems does not provide a formal appraisal. Business Brokers who require a formal appraisal should review the Professional Business Valuator products or contact a certified valuator.

“Always accurate and generates a higher price for me than other brokers get using just rules of thumb

“Helps me document, propose, and convince owners of a sensible price.

Comparison

Business Evaluation Systems Online Business Valuation ValuSource Pro
Designed for Brokers
Designed for Owners and Marketing Tool for Brokers
Created by Answering Simple Questions
Valuation Knowledge Required
Produces Formal Appraisal
Produces “Most Probable Selling Price” Report
Incorporates IBA Market Data
Incorporates BIZCOMPS data

FAQ

Here is a list of the most frequently asked questions. For more information about Business Evaluation Systems or if you need support, please visit the support page.

Do I need valuation experience to use Business Evaluation Systems?

No, Business Evaluation Systems requires no prior formal valuation experience.  There are some assumptions that provide you with flexibility in completing the report, but you can quickly learn how those work and make appropriate decisions based on the company you are valuing.

What kind of report does Business Evaluation Systems produce?

Business Evaluation Systems produces a “Brokers opinion of Value” or as some call it a “Most probable selling price” report.

Does Business Evaluation Systems incorporate comparable market data?

Yes. Business Evaluation Systems can optionally include Price to Earnings and Price to Revenue ratios from both IBA Market Data and BIZCOMPS.

What if I have questions using Business Evaluation Systems?

With your Business Evaluation Systems subscription you have access to our technical support staff via email or phone.   We are happy to answer your questions and help you get your report finished.

Can Business Evaluation Systems be used in court?

No, courts require a formal appraisal produced by a valuation professional.

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