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 not
.
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