Disclaimer : The values that are calculated are on the basis of information and data provided by the user. Tobuz does not take any responsibility for the information. The calculations are totally based on the algorithms and assumptions integrated and result is only a calculative figure. Please do your research before making a decision.
BUSINESS VALUATION TOOLS INSTRUCTIONS
Sales : Enter in the top line revenues of the company for the applicable year. For the most current year, enter in your best estimate of the financial performance for year end.
Cost of Goods Sold (COGS) : Enter in your cost of goods sold.
Operating Expenses : Enter in total operating expenses.
Net : Calculated by taking the Sales minus COGS minus Operating Expenses. Check to see if the calculated net matches the net income of your financial statements.
Add Backs : You can only add back expenses that are in your financial statements. If your salary is $50k and it’s a line item on your expenses, you can only add back $50k.
Officer Salaries: You can add back one for one full time owner’s salary. If you have more than one owner working in the business you will need to adjust by adding their salary back but reducing it by the amount it would take to replace them.
Depreciation: This includes depreciation and amortization. If you have a lot of recurring Capital Expenditures, then you should consider not including the depreciation as an add back or reducing the applicable amount
Interest: You should adjust appropriately for interest expenses and income.
Other Expenses: You should include any non-operating or non-recurring expenses or income. If you’ve included capital expenses in the P&L that should be in the Balance Sheet, you can adjust for that here as well.