blog How To Value Your Business With Pomanda

How To Value Your Business With Pomanda

February 16, 2023

Business Valuations | Pomanda

Why Get a Business Valuation?

Naturally, anyone considering buying, selling, or merging a business would need a clear understanding of a business' value before engaging in negotiations. Yet, the value of knowing what a business is worth isn't limited to these instances alone. It can also be useful for creating option or incentive schemes, fully protecting your assets, planning for retirement, navigating a divorce, or maybe just satisfying that innate curosity about your neighbor's worth. 

Why Choose a Pomanda Business Valuation?

Business Valuations often come wrapped in expense and time. Pomanda demystifies it for those new to valuing businesses, and streamlines it for those who are valuation professionals. With our automated business valuation tool, you can get a confidential business valuation report in under ten minutes. 

Leveraging Pomanda's extensive company and industry proprietary insights, Pomanda's valuation calculator comes pre-populated with key financial data. You can then fully interact with the data, add your most recent financial data, or model future performance and see the valuation recalculate in real time. Once you're happy with the figures, you can instantly generate a detailed, bespoke report with six company valuation methodologies, the calculations behind them, and relevant uses for each. Whether you're driven by curiosity or responding to a specific event, our pricing remains accessible, ensuring affordability without compromising quality.

How Does Pomanda Value Businesses?

Our approach centers around comparative valuations where we look at companies within similar sectors. We collect data from listed companies around the world, categorising each player, and mapping them to specific SIC codes. This forms the bedrock of our sector multiples.

But wait, public and private companies play in different leagues, right? Absolutely. That's where our algorithm comes into play. We've fine-tuned it to translate listed companies' multiple into private ones. How do we do this? By pitting the company in question against its industry peers, we gauge whether to dial up the multiple or give it a grounded boost. Parameters like illiquidity, company size and other essential KPIs dance in this calculation. No fear, you can see the industry multiple, along with the discount or boost applied- full transparency, no tricks.

What's our secret sauce? Tailored valuations. We present you with a bespoke company multiple for each business. Plus, our industry multiples are updated monthly, setting us apart from online resources that muster only yearly multiples.

And speaking of capturing the essence- SIC codes. We get it. Sometimes they're like relics from another era, falling short of capturing the essence of modern businesses. That's why we've built the ability within our business valuation calculator to fine-tune the industry mix to that which best aligns with your business.

Pomanda's 'Quick Valuation' vs. 'Business Valuation Report': What Sets Them Apart?

When you explore a Company Profile as one of our subscribers, you'll encounter the 'Quick Valuation'. This multiple valuation hinges on the latest company filings, offering a swift insight. However, bear in mind that the financials underpinning this valuation might stretch back up to 18 months or lean on Pomanda's financial estimates. Whilst our estimates are best guesses, nothing quite matches the accuracy of user-input financial data. If you're looking for a real bullseye, your data input holds the key.

Now, brace yourself for Pomanda's Company Valuation Calculator & Automated Reports. This powerhouse duo allows you to feed in your latest financials or factor in adjustments for those one-off events. The best part? You're in the driver's seat, interacting with the data, fine-tuning the industry breakdown, and adding in the latest figures.

And there's more. Pomanda's Business Valuation Report steps up to demystify the valuation process. It dives into the nuts and bolts of how these valuations come to life, recognising that valuations can be complex creatures. Our aims to not only provide insights but also educate. Remember, there's no one-size-fits-all in valuations - a business's value is as unique as the price someone is willing to pay for it. What we offer is a legitimate methodology that sheds light on this intricate dance of worth, giving you a solid footing to navigate the terrain.

Want to give it a try? Start here and follow these steps:

  1. Search for the company you would like to value
  2. After payment, you will be directed to Pomanda's Valuation Calculator where you can adjust the figures with your latest financial data and modify the industry breakdown.
  3. With a click of a button generate Pomanda's Business Valuation Report which offers clear explanations of six valuation methods, how they are calculated, when they are best applied and tips on next steps. Our reports download as PDF. You will have 30 day access to the calculator, where you can adjust figures, model different scenarios and rerun the report as often as necessary.

If you have any questions, reach out to theteam@pomanda.com, and a member of our team would be happy to help.

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