Business profit and primary owners income is separated to justify the businesses true and independent earning potential.

Recasting cashflows by separating (telephone, car, petrol card, "private" expenses and home office, which again shows the businesses true and independent earning potential.

Financial institutions have a maximum lending cap and an affordability index, by reducing the total lending interest rates the business can afford another £58 000

Pre-recasting

£150 000 x 2: £300 000

Business financing: £300 000

Equity in deal: £425 000

Total: £725 000

*(Business financing available)

Post-recasting

£175 000 x 3: £525 000

Business financing: £525 000

Equity in deal: £408 000

Total: £933 000

*(Business financing available)

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This is a comprehensive Business Valuation method which will ensure we can give you the best service possible.

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We will review the information of your submission together with you in order to produce an accurate Business Valuation.

Make sure that (sector, turnover, business profit and primary owners salary) are as accurate as possible.

Example 1:

Industry: Accounting and tax practices

Turnover: £ 1000 000 x 1 multiple

Gross Profit: £ 100 000 x 3 multiple

Primary owners salary: £ 50 000 x 6 multiple

Recasted cashflow: £ 25 000 x 3 multiple

Interest saved on 5% financing: £ 58 000 (add-on)

Business valuation: £933 000

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