Bay Pacific Group, Inc. - Company Valuator

COMPANY VALUATOR

The function of the Bay Pacific Group confidential Company Valuator is to formulate an assessment of your company's potential value in the marketplace. It will help you recast and better understand the various drivers that influence the valuation of your company. The BPG Valuator has three sections:

Section 1 includes current balance sheet items required to account for the company's current financial structure;
Section 2 adds back the expenses of your privately owned and operated company; and
Section 3 deducts the expenses as if your company were being operated as a division of a larger and/or publicly owned company.

Instructions:
Enter the dollar amounts in the boxes provided without "$" signs or cents or ","commas.
Areas marked with RED * are required.
Areas marked in YELLOW will be filled in for you automatically when you hit submit.
If you need help, scroll over the for an explanation of what to enter.
Once you have entered all the necessary information, click on "Submit" to receive an Estimated Evaluation.


Section I: Balance Sheet Amounts (Actual amounts from most recent quarter- or month-end financial report):



* Cash and Short-term Investments

* Total Amount of Debt


* Income Tax Rate




Section 2: Current Income Statement Amounts (Annual Amounts, preferably the sum of the previous twelve months):



* Annual Gross Revenue

* Reported Pre-tax Income



(Purpose is to adjust EBITDA by adding back the expenses of a privately owned and operated business)


Owner's Compensation:


Salary


Bonus


Other


Annual Interest Expense


Depreciation/Amortization


Non-recurring Expenses


Overexpensed Capital Expenditures


Other non-essential expenses


Total:	(Calculated for you)


Adjusted EBITDA	(Calculated for you)


Section 3: Income Statement Adjustments for Post-Purchase



(Purpose is to adjust EBITDA by deducting the expenses of a company owned and operated by a division of a larger and/or publicly owned company)


New Management Expenses:


Salary


Bonus


Other (healthcare benefits, company auto, etc.)


Planned Capital Expenditures:


During the 1st Year after sale


During the 2nd Year after sale


During the 3rd Year after sale


Other Income


Total:	(Calculated for you)


Post Purchase Adjusted EBITDA	(Calculated for you)



Company Descriptors:



Sustainable Annual Revenue Growth Rate (for the next 3 years):





Greater than 20% 16-20% 11-15% 6-10% 0-5% 0% Negative



Company Gross Revenue Margins (cost of goods or sales divided by total sales):





Gross margins greater than 40% Gross margins between 31 and 40% Gross margins between 21 and 30% Gross margins between 11 and 20% Gross margins less than 10%



Industry Description:





Retail Distribution Manufacturing Service Full Integrated Business (Mfg, Dist, Sales) Biotech Software



Company Specific Description:


(Select all that apply)


Attractive Customers/Known names Platform for national roll-up Geographically dispersed customer base No one customer greater than 30% of revenues or profits Well known brand High barriers to entry Patented Technology/Products Long-term contracts


Earnings Multiplier:	(Calculated for you)


Estimated Valuation:	(Calculated for you)

A privately owned company, in general, is financially structured and operated differently than if it were a publicly owned company or even a division of a larger company. The BPG Valuator's function is to determine the potential value of your company by recasting your company's current financial structure and earnings before interest, taxes, depreciation and amortization (EBITDA).

The BPG Valuator is proprietary and confidential. Any and all the information submitted is kept private and in complete confidence. If you wish to discuss how your company can enhance its financial position to increase your company's value, please contact us.

Valuation Notes: The Estimated Valuation is an approximation. The BPG Valuator assumes the business has no excessive balance sheet assets or liabilities, such as under utilized equipment, significantly appreciated real estate carried at cost, and/or capitalized expenses, etc. More importantly, the model assumes that the business is capable of sustaining operations at current levels. Additional balance sheet and income statement adjustments will need to be made to the Estimated Valuation to account for these items to calculate a more accurate valuation of the company.

Disclaimer: The Bay Pacific Group Valuator is made available to assist business owners in understanding and calculating business valuation. The BPG Valuator must be considered introductory and educational. It is not intended to provide an appraisal or business valuation for any other purpose. No guarantee of any kind is made regarding the accuracy and completeness of the data and results. No opinion is expressed by BPG, its Partners, Principals or Associates regarding the Estimated Valuation, nor does BPG purport to be a guarantor of any value or information provided. Owners are advised to consult with their professional advisors regarding the use of an interpretation of the results.