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Free Business Valuation Tool

The business valuation tool below provides the user with accumulated investor's 5th year return and accumulated investor's company share. The tool can be used to make an estimate of the economic value of the investor's interest in a business.
The business valuation tool can be purchased and downloaded in Microsoft Excel for only $6. Please follow the link below to download this tool. Following your payment, you will be redirected to the download page.

There are 9 fields that can be changed by the user:
  • The 'Per Year Investor Return' figure. This is where the per year return for each investor is input. Start-up ventures might use a number from 35-50%. Existing businesses might use 20-40%. The more risky the venture the higher the return should be.
  • Fields for the Initial, Year 1, Year 2, Year 3, Year 4, and Year 5 Investments. These fields can be filled in with the amount of investment received in each year.
  • The '5th Year Company Earnings' would be found on your income statement. Net Income in the 5th year could also be used here. You must have 5 years of projections for this calculation to work properly. Butler Consultants Financial Statements can be used to obtain this number.
  • The '5th Year Multiple' is the value the company could be sold for in the 5th year. This can be obtained by looking at similar company's P/E ratios. Your company will not likely sell for as high as a publicly traded company P/E ratio. Try using somewhere around 50% of industry P/E.
Other Notes:
  • 'Years Invested' accounts for the number of years your company holds and investors money.
  • 'Investment Multiple' is based on the Per Year Investor Return and Years Invested. It assumes that the Investment is compounding yearly.
  • '5th Year Value' is the Investment amount times the Investment Multiple.
  • 'Company Share' is the percent of the company each Investment would account to.
  • '5th Year Company Value' is the value of your company in the 5th year.

Per Year Investor Return:            
Investor Return  
  Investment Years Invested Investment Multiple 5th Year Value Company Share  
Initial 5  
Year 1 5  
Year 2 4  
Year 3 3  
Year 4 2  
Year 5 1  
Total    
             
  5th Year Company Earnings 5th Year Multiple 5th Year Company Value  
Company  
 
  Accumulated Investor 5th Year Return  
  Accumulated Investor Company Share  


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