ValuCompass - a proven method to determine the value of your business
* For the most accurate business value, you will need to correctly calculate EBITDA - Click below for guidelines.
It’s FREE. Receive your Executive Report with no further obligation.
Based on a rigorous set of private business standards, first developed at MIT, the Discover Assessment uses an informal survey format to gain valuable insights into a business using a framework of 18 Value Drivers.
Using Discover delivers immediate value by generating a report which includes the company's operational health and value, its potential value, the top three growth opportunities within the company, and highlights any significant risk conditions the business may have.
Your EBITDA calculation starts with the net income or (loss) from your financials or the "Ordinary business income (loss)" shown on your tax return. You will add Interest, taxes, depreciation, and amortization to that Net income. If the business owners compensation is not included in the business expenses, or if it is included but it is not a market rate of compensation for the job of managing the business, an adjustment needs to be made. If the owner is underpaid, an expense needs to be subtracted from the EBITDA - if the owner is overpaid, the EBITDA needs to be increased to adjust the compensation expense.
It is best to use a weighted average of three years to get the most accurate business valuation. Other adjustments may need to be made in some situations.
Q: This looks interesting. What kind of information do I need to provide?
A: The Discover survey is easy to complete. You’ll need to have the following information about your company:
Q: What will you do with the information I provide to you?
A: An excellent question! Diversified Business Advisors is fiercely protective of our clients’ sensitive information, so you can be assured we won’t sell or share any information you provide about yourself or your company. The information you provide will be used to run calculations on the quality of your operations, as well as predictions of value, both current and potential. The program uses a sophisticated methodology developed at MIT and designed to provide business owners with tangible, actionable information needed to help them make sound strategic decisions.
Q: If you don’t share my information, then who has access to see it?
A: Diversified Business Advisors limits access to confidential information; only employees who are qualified and trained as consultants willhave access to your information. Typically, we assign a single user to manage your account. For more information, consult theuser terms of service
Q: What will this survey tell me about my company?
A: Your survey results will be displayed immediately on screen once you’ve answered all questions. You will learn what your company could be worth, if you apply best practices to your overall operations. You will also see your company’s Value Gap –that is, the amount that your company isn’t able to realize now due to operational inefficiencies and systemic ‘bottlenecks’ in your business. You will also see how the most critical areas in your company compare with other companies in your industry. All in all, there’s a wealth of insight to be gained by completing this survey.
Q: What will happen once I finish the survey? Will I get inundated with calls, emails and other offers I really don’t want or need?
A: We will send you an email with a copy of your survey results. This report is yours to keep with our complements. There is no further obligation to engage with us, but we are confident that you will see the value in completing the survey to learn what really makes your company thrive.
Q: Do I need a professional to help me complete this survey?
A: The Discover survey is pretty straightforward and easy to complete. However, some business owners prefer to have us assist them with the questions and help interpret the results. If you’d prefer to go that route, you canschedule an appointment by calling 617-500-5250 click HERE to access an online calendar. Discover appointments are always free.
