This is a simple and effective tool to help you estimate the potential
value of your client's business for shareholder protection purposes.
Steadily reducing profitsSlightly reducing profitsRegular, but not increasing profitsRegular, moderate increase in profitsSteadily increasing profitsSignificantly and regularly increasing profits
The profit multiplier for valuation (also called the price earnings ratio) is used to estimate the current value of future earnings. The multiple depends on market conditions, expected growth rates and the industry that the company operates in.
For convenience and simplicity, a predefined set of multiples have been provided based on
growth expectations. Use the slider bar as a guide and select the most appropriate multiple for the business (between 1 and 6). And remember the higher the multiple, the higher the valuation.
This is the value of the assets the business owns, less the liabilities as per the most recent and accurate
company balance sheet.
Potential value of business
Shareholder/ partner name
% of business owned
Potential value of share in business
It is not possible to have more than 100% ownership
The results are based on the information you have provided and should only be used as a
guide. Your information is only used to work out these results, therefore LV= will not store
or retain any data once you exit the tool.