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BVX®
performs 500,000 to 10+ million calculations per business valuation.
Business ValueXpress®
(BVX®)
does not use any formulas, nor does it use any market data, nor does
it use any known valuation methods. How does then BVX®
determine the valuation of a business?
BVX®
uses random numbers generators to start with a set of numbers for
the selling price, the buyer equity etc. It then calculates a
complete set of financial statements for these assumed set of
numbers. Then it tests to see if the financial statements satisfy
the needs of all parties to the M&A transaction. If all needs
are not satisfied, BVX®
changes the starting set of numbers and tries again. It goes through
this iterative process until all requirements are satisfied and the
selling price is the maximum. The number of calculations can vary
depending upon the random starting position of the key variables,
and depending upon the complexity of the valuation. Typically, BVX®
would perform 500,000 to 10+ million calculations per valuation. For
more discussion see BVX®
methodology.
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