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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