Short answers to what people ask most about this part of the product.
Financials and Valuation FAQ
Introduction
This FAQ explains how to use the app’s Financials and valuation features to prepare a business for sale. It is intended for users who are entering their numbers, choosing a valuation method, and setting sale terms in the app.
FAQ Content
Q1. What information do I need to enter in the Financials section?
You need to add at least one year of financial data showing what came in and what went out. This allows the app to calculate the key figures buyers care about.
Q2. Should I add more than one year of financials?
Yes. You are encouraged to add two or three years if you have them, because buyers trust a trend far more than a single good year.
Q3. How does the app calculate my business valuation?
The app takes your earnings, multiplies them by an industry figure, and gives you a price. It also recommends a valuation method and shows you the normal range for that method.
Q4. Can I adjust the valuation the app gives me?
Yes. After the app calculates a price, you can nudge it up or down within the interface.
Q5. Can I compare different valuation methods?
Yes. In the valuations area, you can choose any available method to see your final bid price based on that method.
Q6. What sale terms can I set in the app?
You can specify whether you are selling the whole business or only part of it. These terms are captured as part of your overall sale setup.
Q7. Why does the app ask why I am selling the business?
The reason for selling is included because an honest answer here helps build trust with potential buyers.
