Comparison

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
30 day access - Business Owner $299 $580 $870 $499 NA $600
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
Flexibility
Can upgrade to pro software/data
Services
Referral to network that provides Certified Valuators
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
Email
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