Use the Shoreline Value Calculator© below for a completely confidential, private assessment of your company's potential strategic value.  This tool shows how value is derived.  Its use is not intended to serve as an appraisal of the business.  Part One adjusts EBITDA (earnings before interest, taxes, depreciation and amortization), the foundation for determining value. Part Two brings other factors, which we call "value drivers," into play. Our calculator will show the influence of modifying various value drivers. If you wish to discuss how they can be influenced to increase your company's value, contact us.  (More information on value can be found in Selling A Company For What It Is Worth and How to Build a Business to Sell: A New Model for Creating Wealth.

Instructions:

Enter the numbers in the boxes provided without "$" signs or cents. Use a minus (-) sign when necessary. Areas marked in RED are required.   Areas marked in GREEN, such as "Total Additions" and "Total Deductions" will be filled in for for you when you complete the form and hit "SUBMIT."  If you need help, put your mouse over the red question mark box for more explanation.  This is a tool. We encourage you to run "what if?" scenarios. You may change the information and re-submit as often as you would like.

Part One: Shoreline EBITDA Adjustments
(Earnings Before Interest, Taxes, Depreciation, and Amortization)

Pre-Tax Income (You fill in)

Add:

Interest Expense (You fill in)

Depreciation (You fill in)

Owner Benefits:

Salary (You fill in)

Bonuses (You fill in)

Other (You fill in)
(e.g. Excessive T&E, personal expenses paid by the business)
 

Non-recurring (You fill in)
(e.g. Law suit expenses, unusual write-offs/bad debts/inventory)

Capitalization (You fill in)
(e.g. Aggressive expense of capital purchases)
 

Other (You fill in)
(e.g. Nonessential expenses)

Total Additions
 (This will be calculated for you)
 

Deduct:

Management (You fill in)
(e.g. Cost to replace owners, including bonus plans)

Other (You fill in)
(e.g. Interest income, gain on sale of equipment, etc.)

Total Deductions
(This will be calculated for you)

EBITDA
(This will be calculated for you)
  

Part Two: Shoreline Value Drivers^©

Annual Gross Revenue (You fill in)  

Growth Rate  Average past two years - sustainable (Check one) More than 20% 10% to 20% 0% to 10% Declining

Type of Business (Check one) Retail Distribution Service Manufacturer with Gross Profit less than 20% Manufacturer with Gross Profit between 20% and 40% Manufacturer with Gross Profit more than 40% Software company

Adjustments (Check all that apply) Attractive customers Platform for national roll-up International Largest customer contributes more than 30% of revenue  Manufacturer of non-proprietary products Company/products have high brand recognition  Technology company

EBITDA Multiplier
(This will be calculated for you)

Business Value will be Returned After Submission of Form

Estimated Value of Business

Note: To experiment, you can change as few, or as many, values as you want and hit "Submit" for a new calculation without having to re-enter unchanged values. To clear the form and start from scratch, click here.

Important: The Estimated Business Valuation assumes the business has a balance sheet that contains no interest bearing debt, no excess cash or other assets, and is capable of sustaining operations at current levels. Accordingly, adjustments must be made to the Estimated Business Valuation to deduct interest bearing debt, add excess balance sheet assets (such as cash balances in excess of operating needs or significantly appreciated real estate), etc.

Disclaimer: The Valuation Calculator and Shoreline Value Drivers are made available by Shoreline Partners, LLC, to assist business owners in determining and understanding factors influencing business valuation.  The tool must be considered introductory and educational.  It is not intended to provide a business valuation for any other purpose. No warranty or guarantee of any kind is made regarding the accuracy or completeness of the data and results.  No opinion is expressed by Shoreline Partners, LLC, its Partners, Principals or Associates regarding the Estimated Business Value, nor does Shoreline Partners, LLC, purport to be a guarantor of any value or information provided. Business owners are advised to consult with their professional advisors regarding the use of and interpretation of this information.