Determining The Value
Of Your Business – It’s
Not About A Multiple
Many business owners and advisers think you can apply a multiple to a number on the income statement to complete a business valuation. Yet, the income statement was never intended to reflect value.
To accurately value a privately owned company you have to look under the hood—learn about the company’s brand, clients, reputation, employees, culture, and capacity to grow or improve, along with a number of other factors.
Determining The Value
Of Your Business – It’s
Not About A Multiple
Many business owners and advisers think you can apply a multiple to a number on the income statement to complete a business valuation. Yet, the income statement was never intended to reflect value.
To accurately value a privately owned company you have to look under the hood—learn about the company’s brand, clients, reputation, employees, culture, and capacity to grow or improve, along with a number of other factors.
Capital Valuation gets at “the story behind the numbers”. We develop valuation and economic models to reach meaningful conclusions that help you make informed decisions.
We break down complex topics in a way they find useful. You can understand the story behind what your numbers mean, and learn about best practices and potential implications for today and the future.
If you’re selling your business, buying a business, are proactively doing business succession planning, have pending litigation or because it is required for your SBA loan application, we can help.
We want you to understand your valuation and feel comfortable asking questions so you can move forward and make change happen.
During the valuation process we:
- Analyze and understand historical trends
- Identify forward-looking capacity
- Develop assumptions for future financial business plan
- Develop what-if scenarios
- Arrive at conclusion of value
Communicate conclusion of value
Cap Val’s Process
At Capital Valuation Group, we offer a comprehensive and flexible valuation process typically completed within six to eight weeks. We pride ourselves on accommodating urgent client needs without compromising quality. Here’s a high-level overview of our process:
Initial Consultation & Scope Definition
We’ll kick things off with a discussion to understand your needs and outline the scope of work.
Preliminary Research
Our team conducts initial research based on the information provided.
CapVal Analysis
We begin our expert analysis of your company’s financial situation.
Completion of Analysis
CapVal finalizes the comprehensive analysis.
Engagement & Documentation
You’ll receive an engagement letter along with a list of necessary documents.
Management Meeting
We meet with your management team to discuss the company’s history and future outlook.
Financial Review with Management
We’ll review the financial analysis and projections together.
Final Review
A concluding meeting is held to discuss the valuation results.
Cap Val’s Process
At Capital Valuation Group, we offer a comprehensive and flexible valuation process typically completed within six to eight weeks. We pride ourselves on accommodating urgent client needs without compromising quality. Here’s a high-level overview of our process:
Initial Consultation & Scope Definition
We’ll kick things off with a discussion to understand your needs and outline the scope of work.
Engagement & Documentation
You’ll receive an engagement letter along with a list of necessary documents.
Preliminary Research
Our team conducts initial research based on the information provided.
Management Meeting
We meet with your management team to discuss the company’s history and future outlook.
CapVal Analysis
We begin our expert analysis of your company’s financial situation.
Financial Review with Management
We’ll review the financial analysis and projections together.
Completion of Analysis
CapVal finalizes the comprehensive analysis.
Final Review
A concluding meeting is held to discuss the valuation results.
Even if you are not considering selling your business or facing an immediate legal need for a business valuation, regular updates to your valuation can ensure your strategic and day-to-day decisions are supporting your long-term goals.
Related Articles
Valuation Analysts & Brokers: Two Different Approaches to Answer “How Much is my Business Worth?”
Jane Tereba | September 25, 2025 For years, Cap Val has been vocal about the shortcomings of simple "earnings x a multiple" valuations. We've...
Why Every Business Owner Needs Regular Valuations (Not Just for Exit Planning)
Jane Tereba | August 21, 2025 Most business owners think of valuation as something you do when you're ready to sell. It's the final step, the...
New Tax Bill Brings Major Changes and Planning Opportunities for Business Owners
Martin Mathias | July 24, 2025 The recently passed tax legislation, the "One Big Beautiful Bill," delivers significant benefits for...
Planning a Family Business Transition? Start with Financial Clarity and Transparency
Jane Tereba | June 19, 2025 Family businesses are often the culmination of years of hard work, legacy, and dedication. However, transitioning...
View All Blog Posts
