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A/R Aging Report Guide1031 Exchange GuideLOC GuideSBA 7(a) GuideSBA 504 GuideSection 179 GuideSelling a Business
Setting an Asking PriceUsing a Business BrokerSelling a Business During DivorceSelling a Failing BusinessTransferring Intellectual PropertyPreparing an Online Business for SalePreparing for Sale, Two Years OutSelling a Business QuicklyWriting a Selling MemorandumSelling a Business Step by StepSelling a Business With DebtChanges Worth Making Before SellingService agreements are recurring and renewable. Replacement work is lumpy, weather-dependent, and a buyer discounts it.
Utilization is 72%, so roughly a quarter of the technician capacity you already pay for is unsold before a single new van is bought.
Read from the calculator on its shipped example. Lines marked (derived) are the difference between two of its figures rather than one it displays directly.
Every figure above is computed from inputs you control. Change one and the whole model moves.
The asset approach is the floor, not the answer. A spread this wide is the argument, and the tool makes you pick a basis.
Revenue is hours sold. The unsold quarter is growth available without capital.
These charts are the calculator’s own, drawn from the example it ships with. Put your figures in and they redraw.
Pricing a heavy replacement year as though it repeats. Strip replacements out and the agreement base is what survives a mild winter — that is the annuity a buyer pays a multiple for, and it is a different number from last year's revenue.
Rules of thumb that circulate because they are roughly right. The calculator labels them as such and asks you to record your own source.
The tool applies all of this to your numbers, and tells you where it disagrees with itself.
On earnings, with service agreements and replacement work priced separately. Agreements are the annuity; replacements are lumpy and weather-dependent, and a buyer discounts them.
The worked example runs 72%, meaning roughly a quarter of the capacity you already pay for is unsold. That headroom is growth available without capital, and it is part of what is being sold.
They are what survives a mild winter. Renewal rate and attrition on the agreement base are the difference between an annuity and a list of customers who bought something once.
The tool computes three — income, market and asset — and they range from $4.69M to $680K on the worked example. The asset approach is the floor, not the answer, and the tool makes you pick a basis and say why.
The answers above use the worked example. Your practice will give different ones.
A trades business has two fundable assets: a fleet and a receivable ledger. The agreement base is worth the most and can be borrowed against the least.
The acquisition itself. Ten years against earnings that include the agreement base, which is the part a lender likes.
Bank debt, seller note and equity against coverage, with the fleet replacement plan sized into the uses rather than discovered later.
For commercial work, where you have done the job and are waiting to be paid. Revolving against receivables, with a borrowing base rather than a facility size.
Vans and diagnostic equipment. Deferred fleet replacement is earnings today and capital expenditure tomorrow, and a buyer discounts twice.
Vehicles have their own caps, separate from the general limit. Worth modelling before the purchase rather than after.
Standby paper bridges a price built on a heavy replacement year to one the agreement base supports.
Agreements are the annuity and replacements are the weather. A mild winter changes the story, so model it in a normal year rather than a bad one.
No credit card required now. As long as your details are in the system, we send the discount access details when the software opens.
And the financing calculators are free and working today. SBA 7(a), 504, CAPLines, Form 413, equipment and seller paper — your account opens all of them the moment you register, months before the valuation software ships.
The whole analysis exports as one PDF, generated server-side — every tab, the five-year history, the normalization and the working behind each figure. Not a screenshot of the tab you happen to be on.
It carries the business name, the period, who prepared it and for whom, so a lender or a buyer can act on it without asking who produced the figures.
One email when the software opens, and nothing else. Your details are not sold or passed on.
Figures are the calculator’s worked example, read from the tool itself. Thresholds described as conventions are not market observations. Saving is optional and off by default; saved work is encrypted at rest with AES-256. This tool produces estimates on figures you enter, not a valuation, appraisal, or legal, tax or accounting advice. ExitAdviser is operated by Simplifying Calculation LLC, a Delaware limited liability company.