Business ValueXpress® (BVX®) is a business valuation and a deal structuring tool that determines the enterprise value as well as the optimal capital structure. BVX® uses Iterative Discounted Cash Flow (DCF) method and optimization technique that simultaneously achieves the willing seller objective of maximum value and willing buyer objectives of ROI (Return on Investment) and no negative cash flow. Iterative DCF method repeatedly calculates complete pro-forma financials using standard accounting practices by varying price and equity until it finds a combination that satisfies all parties to the transaction.
BVX® does not use Weighted Average Cost of Capital (WACC) because it is theoretically wrong, and it does not use the capitalization formula because it ignores debt repayment. BVX® does not use any other formula or market data.
BVX® includes Deal Check, Deal Optimizer and Deal 25. Deal Check provides instant and interactive pro-forma financials of the deal. Deal Optimizer runs Deal Check on an iterative basis to determine the highest business value and the required buyer equity. Deal 25 uses Deal Optimizer to determine business value based on 25 years of forecast.
Basic, Standard and Advanced modes of operation make BVX® very easy to use and learn. BVX® performs interactive valuations and what-if analysis in seconds. It can handle simple transactions to complex deals involving mezzanine financing, balloon note, deferred payments, and over advance loans.
In BVX®, Value of a firm is the Equilibrium of Price, Terms, and Deal Structure that satisfies the needs of all parties to an M&A transaction. This is a departure from the conventional methods that do not incorporate any requirement of a willing seller and are generally silent or lack clarity on the terms and the deal structure associated with business value. BVX® determines the optimal business value by satisfying the requirements of the five claim holders to the business cash flow. These claim holders are: a) the Seller, b) the Buyer, c) the Business, d) the Lenders, and e) the Tax Authority.
A software system designed by Business ValueXpress.
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