Online BV calculators may not be suitable for realistic valuations

Lisa Cribben CPA, ABV, ASA Anthony Gullickson

2 years ago · 9 min read

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Are you looking for an accurate estimate for the value of a business? Have you ever asked or been asked for a “quick” value or a multiple to estimate the value of a business? Unfortunately, there are no “quick” formulas to arrive at a realistic business value. Doing a few “back-of-the-envelope” calculations such as applying a multiple to last year earnings or plugging numbers into an online business valuation (BV) calculator will not provide a reliable value as formulas ignore

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