Corporate Valuation Professional™ - Specifications

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Business valuation software for the discerning valuation specialist, accountant, business advisor and financial analyst.

Corporate Valuation Professional (CVPro) is a complete business valuation software system that is used by appraisers, valuation specialists, CPAs, business advisors and financial decision makers who want a reliable, standardized way to prepare an authoritative and supportable business valuation. CVPro is a field-tested and proven business valuation solution that is Microsoft Windows Vista ready.

CVPro is the only software system designed to conform to the rigorous valuation standards described in Practitioner Publishing Company's Guide to Business Valuation, edited by Shannon Pratt, Jay Fishman and other valuation authorities.

CVPro includes an on-board report builder to that generates a customizable business valuation report that contains all of the elements for IRS 59-60 and the AICPA's new Statement on Standards for Valuation Services No. 1.

System Details:

INSIGHTFUL FINANCIAL ANALYSIS

CVPro includes the metrics you need to assess the financial performance of a business using both historic and normalized (recast or adjusted) financial statements.

• Flexible chart of accounts allows you to mirror the target company's financials and accommodates up to 10 years of historic Income Statement and Balance Sheet data and supporting information.
• Interim financial statements can be entered, adjusted and annualized. You have the option to use Interim Balance Sheet data in the valuation methods. This gives you the flexibility to use either the Interim or Year-End data depending upon which one is most appropriate given the valuation assignment.
• Statements of Cash Flows, Retained Earnings and Sources & Uses of Funds are calculated automatically.
• Easily make "normalization" adjustments for any account and for any historic period. Eliminate the effects of excessive, discretionary, personal, non-operating, deferrals, and non-recurring items to reflect the true economic condition of the company. Normalized (recast) financial statements are presented along with an Earnings & Net Cash Flow Summary that highlights the bottom-line effects of all adjustments.
• Explanatory notes can be made to document and track adjustments.
• Common-size Income Statements and Balance Sheets as well as 33 common financial ratios that measure liquidity, coverage, leverage and profitability are automatically calculated.
• Performance can be compared to the specific industry based on standard Risk Management Association's (formerly Robert Morris Associates) Annual Statement Studies format.
• Performance can also be compared using Integra Information's 5-Year Industry data for common-size statements and 60 ratios.
• Z-Score Model measures the probability of the target becoming insolvent within the next 12 months. This widely used model helps assess economic viability.
• Sustainable Growth Model measures the maximum growth rate of sales that is sustainable without depleting financial resources. This helps determine whether revenue growth assumptions are in line with profit margins, dividend payout, asset turnover and financial leverage assumptions, both before and after the transaction.
• DuPont Analysis to help identify whether changes in ROE are being driven by Sales Margins, Asset Management or Financial Leverage.
• The MoneySoft Five-Minute Diagnostic™ provides a snapshot of a company's footing and highlights the factors that are driving or dragging its performance based upon financial statement data.

A POWERFUL ENGINE FOR PREPARING FINANCIAL PROJECTIONS

CVPro allows you to prepare a set of fully linked, line-item projections of the Income Statements, Balance Sheets, Statements of Cash Flows, Statements of Retained Earnings and Sources & Uses of Funds. Projections can be prepared on a monthly and annual basis.

• Fully linked, line-item projections of the Income Statements, Balance Sheets, Statements of Cash Flows, Statements of Retained Earnings and Sources & Uses of Funds are created for 1 to 10 years
• Detailed monthly financial projections for up to 24 months.
• Income Statement projection options include regression trend-line, historic average growth, manual constant growth, historic percent of sales, variable growth rates, manual percent of sales, manual dollar value inputs, or create your own custom links.
• The base projection amount for each Income Statement account can be adjusted as needed.
• Projected income taxes are estimated based on corporate tax tables or effective tax rates. A Tax Reconciliation Worksheet allows for application of adjustments to taxable income and credits to Federal, State, Local and other taxes.
• Net Operating Loss carry-forward is automatically deducted as projected income permits.
• Common Dividends are calculated as a percent of net income and Preferred Dividends as a percent of the preferred stock balance, or enter dividends manually.
• Accounts Receivable, Inventory and Accounts Payable can be projected using historically calculated turnover ratios, manual turnover ratios or dollar amounts.
• The amount of Fixed Assets required to sustain revenue growth is estimated. Assets can be purchased and disposed of in any projected year. The effect of asset purchases and disposals is automatically calculated along with depreciation using straight-line or accelerated methods.
• Fixed asset purchases can be financed, in whole or in part, during any projected year with changes to the projected financial statements calculated automatically.
• Short-term and long-term notes are amortized with flexible payment options controlled by the user including normal amortization or direct reduction, interest and principal deferrals and balloon payments that are calculated automatically.
• A/R, inventory and cash maintenance revolvers can be set to maintain desired cash balances in the projected balance sheets.
• Goodwill and other intangibles are amortized over any term.
• Key income statement and balance sheet figures are summarized and presented for each projected year.
• Includes summary of depreciation and loan amortization items.

BUSINESS VALUATION USING ACCEPTED METHODS

CVPro includes the methods and approaches necessary to prepare a supportable valuation. Valuation is examined from several perspectives using professionally accepted valuation methods.

The valuation guidance and approaches were designed in collaboration with PPC's Guide to Business Valuation, edited by Dr. Shannon Pratt and other highly regarded valuation experts.

CVPro provides a thoughtful and logical guide through the valuation process. You can examine a company's value using over 25 different methods in order to arrive at a supportable conclusion of value. You select the valuation method(s) that are appropriate and want to include in your valuation report or appraisal.

Asset Valuation Methods: 

• Net Asset Value
• Liquidation Value

Income Valuation Methods:

• Capitalization of Earnings
• Discounted Future Earnings
• Discounted Cash Flow
• When determining discount and capitalization rates, you have the option to use either the Build-Up method or the Capital Asset Pricing Model (CAPM) method. If you are valuing the company on a debt-free basis, you can convert the discount and capitalization rates to their debt-free equivalents based on the company's weighted average cost of capital.
• In valuing the company's historic and/or future earnings, you can use any of the following: Normalized Net Income, EBT, EBIT, EBITDA, Net Cash Flow and Free Cash Flow.

Market and Comparable Company Valuation Methods:

• Price to Earnings using Done Deals/Completed Transactions database (uses Net Income), Pratt's Stats (uses Net Income and EBT), Mergerstat database (uses Net Income) and/or a User defined option.
• Price to Revenue using Done Deals/Completed Transactions database, Pratt's Stats (using both Equity Price & Deal Price), BIZCOMPS database and/or a User defined option.
• Price to Cash Flow from Operations (using Done Deals/Completed Transactions).
• Price to Gross Cash Flow using Pratt's Stats and/or a User defined option.
• Price to Discretionary Earnings using Pratt's Stats and/or BIZCOMPS.
• Price to Dividends (User defined).
• Price to Net Asset Value.
• Price to Total Assets (using Done Deals/Completed Transactions)
• Price to Equity using Done Deals/Completed Transactions, User defined on Book Value, User defined on Net Asset Value, Deal Price to EBIT (using Pratt's Stats) and/or Deal Price to EBITDA (using Pratt's Stats).

Other Valuation Methods:

• Capitalization of Excess Earnings.
• Multiple of Discretionary Earnings.
• Preferred Stock valuation based upon the market yield of preferred stock from comparable companies.
• CVPro gives you the option to apply Control Premiums, Minority Discounts, and Marketability Discounts as well as the ability to value partial interests.
• Control Premiums, Minority Discounts, and Marketability Discounts can be applied to each individual valuation method or in the valuation conclusions.
• A valuation summary lists each method used and the respective value, which can be weighted and averaged to arrive at a total equity value.

Supportable and Reasonable Valuation:

• An "economic reality test" of your conclusion of value is included. You set hypothetical purchase terms including the amount of equity and the required return, and the amount and payment terms of up to four levels of acquisition debt. A "real time monitor" gives you instant feedback.
• Key measures of operating performance and Return on Investment performance for the hypothetical transaction terms are provided as part of the economic reality test.
• Also included are flexible Rules of Thumb that allow you to use any combination of multiples of earnings, assets, and user-defined multiples to determine the reasonableness of the values indicated by the other methods.

PROFESSIONAL-QUALITY VALUATION AND APPRAISAL REPORTS

Review a sample Valuation Report

Would you like to see a sample of the customizable business valuation report
generated by Corporate Valuation Professional?
Then just click here to download it (PDF document).

• CVPro includes the MoneySoft Financial Report Builder that links the numeric analysis with a pre-formatted report and narrative that automatically documents the analysis for you using Microsoft Word. You can use the on-board report builder to create a detailed report that contains all of the elements for IRS 59-60 and the AICPA's new Statement on Standards for Valuation Services No. 1.
• The Financial Report Builder is "smart" enough to know what analysis you actually performed and describes the results of the analysis. Both the templates and generated reports are fully customizable using Microsoft Word. This eliminates the need for re-keying information or cutting and pasting.
• CVPro contains over 100 supporting schedules that can be printed individually or in user-defined batches.
• Print controls include page orientation, headers and footers, scaling (print-to-fit), and much more.
• The Graphing function generates pre-formatted graphs and updates them as your data changes.

Valuation is a serious business. If you're looking for an equally serious valuation tool that will save you time and money preparing supportable and credible business valuations and appraisals, then you'll want to try Corporate Valuation Professional today!

Call 800-966-7797 to talk with a knowledgeable representative.