Useful Valuation-Related Websites
and Applied Valuation Support
In addition to those websites listed in the Upstart Guide and the Business Valuation Book (especially inside the ARM Approach Questionnaire), the following websites are of particular interest and value and should be perused as time permits. Certain websites should be used for the EBO projects, as later discussions in class will illustrate.
The three sites above will be available by password sometime soon (week 3 of classes). It is the market data and the library which will provide the most substantial and valuable information for purposes of understanding business valuation.
This site contains tutorials on how to use the "Direct Market Data Method" or DMDM, which is the market approach technique created by Mr. Ray Miles (founder and former Director of the IBA). Useful information pertaining to valuation certification is also available.
These two sites are affiliated and will be available through the purchase of the NACVA course binder. In addition to substantial content, you will also find the pertinent requirements for seeking out the CVA or AVA designations.
This site contains both interesting valuation articles and, most importantly, a sample business valuation report. Although this report is relatively thorough, it does contain some "questionable" applications (see if you can determine what these are once the class has been completed).
This site includes a "Valuation Manual", incorporating many of the "generally accepted valuation principles and procedures".
This industry-based (SIC code) website offers six distinct "reports" which can be used in support of your EBO analysis. Ranging in cost between about $75 to $500, each group will be provided with one report as a "gift" from the Instructor!!!
Go check out this "Business Reporter" website to see if you can use any of the industry-based reports or analyses (again paid for by the Instructor).
This free website contains a wealth of industry-oriented financial statement insights, typically grouped by type of organizational format (sole proprietorship, partnership, corporation). This site also contains some unique financial indicators that are not readily available anywhere else.
This is a "one-stop" resource for conducting valuation analysis and offers "links" to a wide variety of supporting websites ranging from industry reports to compensation information to rules of thumb, etc.
This free site (the basic service is free) can provide meaningful salary and benefits information by type of position, by industry, by firm size and by geographical location, etc. (as used to determine "excessive compensation" for valuation purposes.
This gratis site focuses on tax-related valuation court case findings and is a must for litigation-oriented valuation endeavors. The sponsoring firm is called "Financial Valuation Group" and is one of the largest valuation firms (employers) in the nation.
This site is primarily a "deal-oriented" collection of actual businesses for sale throughout the USA and the world. Also contains several "support" pages and links including valuation-related topics.
This exceptional website is hosted by the author and publisher of the Ibbotson "Stocks, Bonds, Bills and Inflation" Yearbook, which contains an unprecedented amount of long term security risk and return data including industry betas and industry risk premia. A one- page SIC-code based summary can be purchased at reasonable cost which contains a wealth of financial data such as growth rates (revenues, EBIT, EBITDA, net income) of a historical and forecasted nature, industry cost of capital averages and much, much more.
Comprehensive guide to conducting online industry research.
Search capability and “back and forth” option for SIC and NAICS codes.
Intriguing collection of "calculators" for a variety of business purposes including working capital, capital expenditures, inventory management and even basic valuation applications.
Lists and describes an eighteen (18) step process for conducting industry research.
Provided by Banister Financial Inc. (business valuation specialists), this site contains an above average and often industry-specific collection of valuation articles, treatises, summaries, etc. Also a major employer of valuation professionals.
A list of eighty-one (81) different valuation firms or companies which provide "business valuation services".
It is now possible to "self-direct" the research process to a much larger degree as a result of the newly available resources (including the following):
BVLibrary.com (comprehensive collection of articles, presentations, summaries, guidelines, overviews, newsletters, etc. related to private firm valuation)
BVMarketData.com (access to Bizcomps and Pratt’s Stats for both business brokerage and middle-market comps).
IBA’s Technical Studies (comparable sales method; including CD for analyzing market data called "Market Data Analyzer".
www.c-e-i-r.com (industry and economic analyses of various types and sizes)
www.nacva.com (Valuation Examiner, International Glossary, IRS Business Valuation Guidelines, NACVA Professional Standards, etc.)
The following list was taken from the "members only" section of the NACVA website:
Other tools that could be used in a valuation assignment include the following:
Financial Analysis Tools
- One Integra Information Services product, ranging from industry forecasts to comparative financial statement analysis by SIC code (called the “Business Profiler”).
- One “Business.com” industry report or company search (for Guideline Public Company Method)
- Access to RMA financial data (available at the IBIC)
- Access to Almanac of Business and Industrial Financial Ratio Analysis (IBIC)
- Access to the IRS Corporate Financial Ratios (Schonfeld Associates)
- www.dinkytown.net (contains a variety of interesting “calculators”, e.g. working capital, inventory, capital budgeting and more).
- Information regarding www.bizstats.com
- Ibbotson’s “Stocks, Bonds, Bills and Inflation” Yearbook (contains cost of capital, equity premium and other “build-up” components such as “industry premia”; generally comprised of historical, long term security return information).
- www.Ibbotson.com (can purchase one-page industry financial summary with cost of capital, historical and forecasted growth rates by industry, e.g. revenues, earnings, assets, etc.)
- Other industry-specific tools and reports (as collected over the years), e.g. www.pricingsociety.com (interesting information and insights regarding pricing tactics and strategy)
Market “Comparable Sales” Tools
- Access to BIZCOMPS market comps, including Western States Edition, Foodservice Edition, National Industrial Study (larger firms), etc. (the general database is now available directly through BVMarketData.com, but the Foodservice Edition and National Industrial Study are in my office)
- Access to Institute of Business Appraisers market data (requested by email and according to SIC code).
- Access to Pratt’s Stats market data, including the following:
Access to VR Business Brokers market comp database, arranged by business type, e.g. retail, manufacturing, food service, automotive related, distribution, etc. and by company size, etc.
Access to the Valley Board of Business Brokers database, based on “local” sales throughout the greater Phoenix metro area.
Done Deals Data (middle-market firms).
Mergerstat 2002 (public firm acquisition data, e.g. multiples by industry).
- BIZCOMPS (more current edition)
- Pratt’s Stats (middle-market companies)
- Public Company Database (for guideline public company method)
- Other industry-specific publications, reports, analyses, books, articles, newsletters, etc. as they relate to your specific company and industry, e.g. www.virtualpet.com/industry/howto/search.htm#general (lists and described in detail 18 steps related to researching an industry) or www.industryresearch.com (self-explanatory?).
- Current economic reports of national and local content, e.g. Economic Update for US economy as of 2nd Quarter, 2003 (updated regularly).
- Other tools and techniques based on detailed conversations regarding your unfolding analysis, e.g. CEO’s Handbook with around 100 qualitative/quantitative evaluation techniques.
- Business Reference Guide (most complete source of industry-based valuation rules of thumb)
- Desmond’s Handbook (rule of thumb data)
- www.valuationresources.com (one-stop valuation resource, includes links to industry reports, financial data for “typical” firm, rules of thumb, association/organization webpages and reports, human resources/salary data and much, much more).
- www.salary.com This free site (the basic service is free) can provide meaningful salary and benefits information by type of position, by industry, by firm size and by geographical location, etc. (as used to determine “excessive compensation” for valuation purposes.
- www.Hoovers.com (to locate public company data for industry research and for market approach applications)
- www.websitegarage.netscape.com/ (allows meaningful review of a given website including site-specific feedback and recommendations).
- www.naics.com (to locate both NAICS and SIC codes and go back and forth between these two classification systems).
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