EVA Business Valuation Model
The EVA Business Valuation Model
Transforming traditional, subjective business valuation into a data-driven, systematic process, converting valuation from an “art” into a reliable “science”.
EVA uses seven key valuation models, all tailorable based on the buyer’s goals, business profile, and deal structure. EVA blends these models to create a well-rounded valuation rooted in recent performance history and future projections.
Understandable & Explainable Valuations
EVA streamlines the valuation process, making it straightforward and efficient, allowing for agreement on standardised valuation techniques and assumptions. This clarity minimises discrepancies between professionals and fosters client trust.
EVA is designed to support clients at every step—from financial due diligence to exit valuation—empowering them to live the life they want without financial insecurity. Advisors benefit, too, saving days compared to traditional methods and ensuring clients avoid being part of the 99.5% of businesses that fail to exit successfully.
With EVA, advisors can flexibly support clients, whether for a specific project or ongoing guidance towards an exit goal. EVA offers packages to suit any need.
Valuing a Small Business - The EVA Suite
The EVA Suite integrates up to seven business valuation approaches to determine a business’s value based on current financial trends.
These approaches include:
- Return on Investment Valuation: Valuation based on the annual return a prospective buyer would look to generate from the investment.
- EBITDA Multiplier: Valuation based on the EBITDA multiple of the sector in which the business operates.
- Cash Payback: Valuation based on the number of years a buyer would want it to take for the business to generate enough cash to repay their investment.
- Revenue Multiplier: Valuation based on a multiple of recurring revenue.
- Balance Sheet: Derives value from net asset value, comparing total assets to liabilities.
- Discounted Cashflow: Projects future cash flows and applies a discount rate for risk and time value.
- Cash Flow: Measures the ability of the business to generate cash to pay the seller over a period of time.
The EVA suite allows for a tailored blend of these methodologies, providing clients with a comprehensive and fact-based valuation range that aligns with their unique circumstances.