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BVX®
can be used for small or large business, any type.
Business ValueXpress®
(BVX®)
has been used in many different industries for valuation of small mom-and-pop
businesses requiring no bank financing to large privately held business
requiring multiple layers of financing. Even though BVX®
inputs are independent of the size and the type of the business, its
valuations equal actual market transactions. Why are BVX®
valuation results so accurate? This is due to the fact that BVX®
relies heavily on the operating characteristics of the business, and the ability to get
financed; these factors presumably reflect its size, industry,
and overall health of the economy. The fundamental premise of BVX®
is that the valuation of a company is company-specific, not just
industry-specific.
For example, lets us say there
are 3 companies manufacturing Grabule, a health care product. Assume that
each one of them makes the same profit, has the same growth opportunity,
and can get the same financing terms. One company sells to the drug
stores, the second to the hospitals, and the third to the retail customers
with credit cards by phone. BVX®
will come with a different valuation for each of the three companies; conventional methods will
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