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WO2001006431A1 - Procede et systeme automatise d'evaluation en ligne d'entreprises - Google Patents

Procede et systeme automatise d'evaluation en ligne d'entreprises Download PDF

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Publication number
WO2001006431A1
WO2001006431A1 PCT/US2000/019124 US0019124W WO0106431A1 WO 2001006431 A1 WO2001006431 A1 WO 2001006431A1 US 0019124 W US0019124 W US 0019124W WO 0106431 A1 WO0106431 A1 WO 0106431A1
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Prior art keywords
enterprise
valuation
user
value
subject
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PCT/US2000/019124
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English (en)
Inventor
Malon Wilkus
Webb C. Segur
Bradley G. Burdge
Luigi J. F. Canali
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American Capital Strategies
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Priority to AU60960/00A priority Critical patent/AU6096000A/en
Publication of WO2001006431A1 publication Critical patent/WO2001006431A1/fr

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    • G—PHYSICS
    • G06—COMPUTING; CALCULATING OR COUNTING
    • G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
    • G06Q40/00—Finance; Insurance; Tax strategies; Processing of corporate or income taxes
    • G06Q40/02—Banking, e.g. interest calculation or account maintenance

Definitions

  • This invention pertains to the field of enterprise valuations, and, more particularly, to automated on-line valuation of an enterprise.
  • a user must have available a computer either having the valuation program installed thereon, or be connected to a network, such as a known distributed computing environment of the prior art, for example, as described in U.S. Patent No. 5, 715, 453, U.S. Patent No. 5,794,230 and/or WO9833307A1, where the program is hosted.
  • these tools are often simplistic and do not provide a thorough approach to calculating an enterprise's worth, not taking into account more than one method of valuation, and the unique and dynamic attributes of a small enterprise.
  • a valuation program operates with certain assumptions about market conditions, such as interest rates, which must be updated to reflect current conditions each time that a valuation is being performed. For a stand-alone installation, this typically is done manually by user entry, requiring every user of the program to obtain this information on his own.
  • the present invention comprises an automated online method of enterprise valuation.
  • a distributed computing environment hosts an enterprise valuation program for allowing multiple users to perform an enterprise valuation process remotely.
  • an Internet user performs an automated on-line method of enterprise valuation via an enterprise valuation Web site which hosts an enterprise valuation program. Any user with access to the Internet may interact with and use the online program to perform an enterprise valuation exercise.
  • the single Web site can simultaneously execute enterprise valuation computations for many users located remotely throughout the world.
  • a user can perform an enterprise valuation exercise by interacting with the enterprise valuation program without downloading any dedicated software onto his or her computer, for example, via a Web browser interface.
  • a user may store the valuation data and valuation results for a particular enterprise valuation exercise on a remote storage device associated with the distributed computing system, such as an Internet Web site.
  • an enterprise valuation program employs multiple valuation algorithms to produce a more reliable and robust enterprise valuation.
  • the enterprise valuation program produces a valuation for a subject enterprise by valuation algorithms which take into account the market values of comparable companies, and by analyzing dynamic aspects of the subject enterprise, such as the subject enterprise's current and projected discounted cash flow over a period of some years .
  • Users provide valuation assumptions, such as financial data for the subject enterprise, and the enterprise valuation process generates output values for the each subject enterprise.
  • an enterprise valuation process executed in a distributed computing environment automates the process of valuing an enterprise.
  • Time-varying market-based variables are automatically entered into the enterprise valuation process without requiring user entry.
  • market assumptions such as discount interest rate, control premium, etc. are automatically linked into an enterprise valuation program from external information sources, such as the Internet, such that each user does not have to locate and provide the information themselves.
  • a current, updated database of public company valuation and financial information is maintained at a central location in the distributed computing system, accessible by many remote users, so that comparisons of public company values with a subject enterprise will be based on currently valid market data.
  • Figures 1A-D is a flowchart of an automated on-line enterprise valuation process.
  • Figure 2 shows an exemplary standard industry classification (SIC) database.
  • SIC standard industry classification
  • Figure 3 shows an exemplary comparable company database .
  • Figure 4 is an exemplary financial data form for entering financial data for the subject enterprise to be used in an automated on-line enterprise valuation process .
  • Figure 5 shows a flowchart for an enterprise valuation program.
  • Figure 6 shows a flowchart for a first embodiment of a valuation algorithm for an enterprise valuation program.
  • Figure 7 shows a flowchart for a second embodiment of a valuation algorithm for an enterprise valuation program.
  • Figures 8A-B show exemplary market value data and financial performance data for an exemplary comparable company which may be used by an automated on-line enterprise valuation process.
  • FIG. 1 A preferred embodiment of an automated on-line enterprise valuation process 100 is shown in Figure 1.
  • a user performs an automated enterprise valuation exercise using a user computer connected remotely over the Internet with an enterprise valuation web site.
  • the invention is usable in any similar distributed computing environment having a host computer for hosting an enterprise valuation process in conjunction with a one or more user computers.
  • the enterprise may be a company, a partnership, a sole- proprietorship, or a similar form of business.
  • a user in a first step 102 establishes an Internet connection between a user computer and an enterprise valuation Web site which hosts an enterprise valuation program.
  • the user may access the Web site with any standard Web browser program, such as INTERNET EXPLORER® or NAVIGATOR®.
  • the enterprise valuation Web site presents the user with an option to perform an enterprise valuation by "clicking" his or her mouse on an embedded link displayed via the user' s Web browser onto the user's computer screen. If in a step 106, the user "clicks" on the embedded link, then in a step 108, the enterprise valuation Web site launches an enterprise valuation program, such as that described in more detail with respect to Fig. 5 below. In the automated on-line enterprise valuation process 100, the enterprise valuation Web site will execute steps of the enterprise valuation program to compute a fair market value for a subject enterprise.
  • the enterprise valuation Web site transmits back to the user a Web page containing a disclaimer, and an entry form for the user to enter a unique e-mail address and password to login to the enterprise valuation Web site.
  • the user enters the e-mail address and password and sends the data back to the enterprise valuation Web site.
  • the e- mail address and password may be used by the user to return to the enterprise valuation Web site and retrieve data and results of previous enterprise valuation exercises, as will be described more fully below.
  • the enterprise valuation Web site searches a user database to determine whether a user matching the e-mail address is in the user database. If not, then the process continues in a step 126 as described below.
  • the enterprise valuation Web site verifies whether the password entered by the user matches the corresponding password in the user database. If not, then in a step 118, the enterprise valuation Web site transmits to the user a Web page advising him or her that the password is incorrect and, returning to the step 110 so that the user may re-enter the e-mail address and password.
  • the enterprise valuation Web site maintains a count of the number of consecutive incorrect login attempts for a particular e-mail address.
  • a predetermined threshold e.g., three
  • all future login attempts with that e-mail address are denied and an e-mail message is automatically transmitted to the e-mail address, advising the user of the situation, perhaps advising them of procedures for re-opening the account.
  • the database is accessed to determine if the enterprise valuation Web site has saved data for any previous valuation exercises which the user has performed. If so, then in a step 122, the enterprise valuation Web site transmits to the user a Web page including a list of file descriptions for previous valuation exercises which the enterprise valuation host computer has saved. The Web page presents the user with an option to perform a new valuation, or to open a saved valuation exercise and compute a new valuation result. In that case, in a step 124, the user transmits back to the enterprise valuation Web site a selection of either one of the previous valuation exercises, or a new valuation exercise. If the user selects one of the previous valuations, then the process proceeds to a step 154, as described below. If the user selects a new enterprise valuation exercise, then the process continues at a step 132.
  • the enterprise valuation Web site transmits to the user a Web page indicating that no previous valuation exercises have been saved.
  • the transmitted Web page presents the user with an option to perform a new valuation exercise, or to go back and re-enter his or her e-mail address and password.
  • the user transmits back to the enterprise valuation Web site a request to either re- enter his or her e-mail address and password, or to perform a new valuation exercise. If the user requests an opportunity to re-enter his or her password, then the enterprise valuation process returns to the step 110.
  • a new entry is added into the user database with the user' s e- mail address and password.
  • the enterprise valuation program opens a Standard Industrial Classification ("SIC") code database which is to be used in the enterprise valuation process.
  • SIC Standard Industrial Classification
  • the enterprise valuation Web site transmits a Web page to the user showing a list of SIC codes from the SIC code database and asking the user to select one of the SIC codes which most nearly matches the business in which the subject enterprise engages.
  • the Web page also contains an entry blank for the user to enter a filename for storing the data and results for the valuation exercise for the subject enterprise.
  • the user selects an SIC code from the SIC code list and transmits the selected SIC code back to the enterprise valuation Web site.
  • the user also transmits a file description for the enterprise valuation Web site to store the data and results for the valuation exercise for the subject enterprise .
  • the enterprise valuation Web site opens a company database which is to be used in the enterprise valuation process.
  • Fig. 3 shows an exemplary company database 300 containing a plurality of comparable company entries 310.
  • the enterprise valuation web site provides a current, updated database of public company valuation and financial information at a central location, accessible by many remote users, so that comparisons of public company values with a subject enterprise will be based on currently valid market data.
  • the enterprise valuation Web site extracts from the company database those companies having an SIC code which matches the SIC code selected by the user in the step 136.
  • the enterprise valuation Web site transmits a Web page to the user showing a list of comparable companies which were extracted from the company database having the same SIC code as the subject enterprise, and asking the user to select one or more of the companies which are most closely comparable to the subject enterprise.
  • the user selects one or more of the comparable companies, and then transmits to the enterprise valuation Web site a list of the selected comparable companies.
  • the enterprise valuation web site includes one or more entry lines wherein a user may select one or comparable companies of the user's choosing which do not have the same SIC code as the subject company. In that case, a user may manually enter a stock ticker symbol for one or more user-selected company (s) to be included in the selected comparable company list.
  • the enterprise valuation program stores those comparable companies selected by the user for later use in calculating a value for the subject enterprise.
  • the user is presented with an option to return to the step 142 to edit the list of selected comparable companies .
  • the enterprise valuation Web site transmits to the user a financial data web page including a financial data form for entering specific financial information pertaining to the subject enterprise.
  • the financial information includes data pertaining to the current and projected financial performance of the subject enterprise over a period of "X" years, preferably over a period of five years.
  • the financial data web page and/or the financial data form includes information and instructions to assist the user to enter the proper data into the financial data form.
  • Fig. 4 shows an exemplary financial data form 400 which may be transmitted to a user to enter financial data for the subject enterprise. It should be understood that the form may be changed in many ways within the operation of the present invention, including changing the number of years for which data is supplied, changing the specific financial data which is entered, etc.
  • the exemplary financial data shown on the financial data form 400 will be used to explain a preferred embodiment of the enterprise valuation program with respect to Fig. 5 below.
  • a step 150 the user enters financial data for the subject enterprise into the financial data form via the user's Web browser interface.
  • the user may also select an option to return to the step 142 and change the list of selected comparable companies.
  • a step 152 the user transmits the completed financial data form to the enterprise valuation Web site.
  • the enterprise valuation Web site transmits to the user an assumptions Web page containing a list of the parameters that will be used in a subsequent value calculation for the subject enterprise, based on the user's inputs in the steps 144 through 152.
  • the Web page presents the user with an option to accept the parameters and begin the calculations, or to return to either the steps 136, 142 or 148 and change the SIC code, selected comparable companies or the subject enterprise's financial data.
  • the user may be permitted to edit the data on the assumptions web page and transmit the edited data to the enterprise valuation web site.
  • the user is also presented on the assumptions web page with a default weight to be applied to each of a first and second valuation algorithms which are used by the enterprise valuation program to compute a fair market value for the enterprise.
  • the user may edit the weights such that either the output of the first or the second valuation algorithm is given more weight when computing the fair market value of the enterprise.
  • the user selected weights are then transmitted back to enterprise valuation web site.
  • a step 156 the user indicates to the enterprise valuation Web site his or her approval of the list of valuation parameters that will be used in a subsequent value calculation for the subject enterprise.
  • the enterprise valuation program creates a data file for saving the valuation parameters for the subject enterprise valuation exercise in a long term storage device (e.g., a hard disk) associated with the enterprise valuation Web site.
  • the data files for enterprise valuation exercises are indexed at the enterprise valuation Web site by the e-mail address of the user, and by the file description supplied by the user in the step 136.
  • the enterprise valuation program computes valuation results, including an fair market value for the subject enterprise.
  • the enterprise valuation program computes the fair market value for the enterprise according to the process described below with respect to Fig. 5. Nevertheless, the actual valuation algorithms and methodology are transparent to the user other than, significantly, in the reliability and accuracy of the enterprise value which is produced thereby and supplied to the user.
  • the enterprise valuation program creates a results file for saving the enterprise valuation results in a long term storage device (e.g., a hard disk) associated with the enterprise valuation Web site.
  • the results files for all enterprise valuation exercises are indexed at the enterprise valuation Web site by the e-mail address of the user, and by the filename supplied by the user in the step 136.
  • the results file is in a form suitable in a form for transmission to the user, such as one or more Web pages created using hyper text markup language (HTML) that are transmitted to the user for display via the user's Web browser.
  • HTML hyper text markup language
  • the data could be saved in a commonly-used electronic file format, such as ADOBE® ACROBAT®, or even a downloadable text file.
  • the enterprise valuation Web site transmits to the user a summary results Web page showing a summary of the valuation results for the subject enterprise.
  • the Web page contains an embedded link identifying where on the enterprise valuation Web site the more detailed valuation results are saved.
  • the summary results Web page indicates a fair market value for the subject enterprise, and also a fair market value for the subject enterprise's equity.
  • the summary results Web page includes an embedded link whereby the user may start return to the step 104 at the start of the valuation process.
  • a step 166 the user indicates either a desire to edit the valuation data or to view the detailed valuation results .
  • FIG. 5 shows a flowchart 500 for an enterprise valuation program which may be used in the automated online valuation process 100.
  • the enterprise valuation program uses at least two separate valuation algorithms to compute a fair market value for a subject enterprise. In a preferred embodiment, each algorithm computes a total invested capital ("TIC") for the subject enterprise.
  • TIC total invested capital
  • Cash reflects the amount of net cash that the subject enterprise has on hand
  • Debt reflects the current short-term and long-term debt of the subject enterprise .
  • a first enterprise valuation algorithm computes a TIC value for a subject enterprise on the basis of dynamic aspects of the subject enterprise's performance - preferably, the subject enterprise's discounted cash flow.
  • a second enterprise valuation algorithm computes a value for a subject enterprise on the basis of established values of comparable companies.
  • the first enterprise valuation algorithm of the enterprise valuation program computes a value for a subject enterprise from an analysis of the subject enterprise's discounted cash flow, based upon financial information provided by the user.
  • a user provides financial information using the financial information form 400 shown in Fig. 4. The operation of the preferred embodiment of the first enterprise valuation algorithm, performing a discounted cash flow valuation on a subject enterprise, will be explained with respect to Fig. 5 and the exemplary financial data shown in Fig. 4.
  • the enterprise valuation program computes a Weighted Average Cost of Debt ("WACD") for the subject enterprise.
  • WACD Weighted Average Cost of Debt
  • the Debt/Capital ratio is calculated as an average of the Debt/Capital ratios for all of the selected comparable companies, based on financial data available in the company database as shown, for example, in Fig. 9.
  • the enterprise valuation program uses Average Cost of Debt and Tax Rate values which reflect current market conditions at the time that the valuation exercise is being performed.
  • the Average Cost of Debt is equal to the average weighted interest rate of long-term and short-term debt of the subject enterprise and is supplied by the user via the financial data form 400.
  • the Average Cost of Debt may be equal to the current prime lending rate.
  • the enterprise valuation program automatically periodically updates the prime lending rate used in its calculations to reflect current market conditions, for example, by downloading a prime interest rate value from an Internet Web site.
  • the Tax Rate reflects the current prevailing tax rate for the subject enterprise, computed based upon financial data supplied in the financial data form 400 of Fig. 4. For example, if the Average Cost of Debt was 8.00% and the subject enterprise's tax rate was 38%, then, in the case of the financial data shown in
  • WACE Weighted Average Cost of Equity
  • the Equity/Capital ratio is calculated as an average of the Equity/Capital ratios for all of the selected comparable companies, based on financial data available in the company database as shown, for example, in Fig. 9.
  • the enterprise valuation program uses Risk Free Rate, Comparable Equity Risk Premium and Small Stock
  • the Risk Free Rate may be equal to the current one year Treasury Note interest rate.
  • the enterprise valuation program automatically periodically updates the Treasury Note interest rate used in its calculations to accurately reflect the current market value, for example, by downloading the Treasury Note interest rate value from an Internet Web site.
  • the Comparable Equity Risk Premium and Small Stock Premium values may be periodically updated at the enterprise valuation Web site to reflect current market conditions at the time that the valuation exercise is being performed.
  • default Comparable Equity Risk Premium and Small Stock Premium values may be provided by the enterprise valuation Web site, and the user may be allowed to modify the default values though the financial data form 400.
  • the Enterprise Specific Risk Premium may be derived from the subject enterprise's size relative to other companies in its line of business.
  • a default Enterprise Specific Risk Premium may be provided by the enterprise valuation Web site and the user may be allowed to modify the default value though the financial data form 400.
  • the enterprise valuation program would compute:
  • the enterprise valuation program computes a Weighted Average Cost of Capital (WACC) for the subject enterprise.
  • the WACC is computed as follows :
  • the enterprise valuation program computes a Net Present Value ("NPV") of the projected Cash Flow for the subject enterprise over the time interval between the present time and the year "X", each year' s Cash Flow is obtained from data entered by the user on the financial data form 400.
  • NPV Net Present Value
  • "X" is five (5) .
  • the NPV is computed by discounting the Cash Flow for each year from the present through Year "X" by the WACC computed earlier, according to the formula:
  • the enterprise valuation program computes a future terminal value ("FTV") for the subject enterprise at year "X”.
  • FTV is computed as follows :
  • the "Projected Growth Rate of Net Cash Flow” is the growth rate at which the enterprise's cash flows are projected to grow in perpetuity.
  • the first valuation algorithm of the enterprise valuation program computes a first Total Invested Capital (TICi) value for the subject enterprise as:
  • the enterprise valuation program computes a first TIC value for the subject enterprise using a first valuation algorithm based on dynamic aspects of the subject enterprise.
  • a first valuation algorithm comprising steps 505 through 535
  • the enterprise valuation computes a value based upon dynamic financial data for the enterprise, e.g., current and projected cash flows; enterprise debt; capital expenditures; taxes; etc., and also reflecting prevailing market conditions, e.g., Risk Free Rate; Prime Lending Rate; Control Premium etc.
  • the enterprise valuation program computes a second TIC value for the subject enterprise via a second valuation algorithm 550, using established values of comparable companies.
  • the second valuation algorithm 550 computes a second TIC value for the subject enterprise on the basis of dynamically computed values of comparable publicly- traded companies from the then-current market capitalization and the financial performance of these comparable companies.
  • the enterprise valuation program retrieves a list of selected comparable companies for computing a value for a subject enterprise.
  • the list of selected comparable companies consists of companies having a same SIC code as the subject enterprise, and any other additional companies, that are selected by a user.
  • the enterprise valuation program retrieves current valuation data and financial data for each of the selected comparable companies from the company database.
  • Figs. 8A-B show valuation and financial data for an exemplary comparable company used in a preferred embodiment of the second valuation algorithm.
  • the enterprise valuation program computes a TIC for each of the selected comparable companies.
  • the TIC is computed as :
  • the Control Premium is a factor supplied by the enterprise valuation program and reflects a prevailing market value associated with acquiring sufficient shares of an enterprise to control it. In other words, the Control Premium reflects the market reality that a purchaser must pay a premium for an enterprise's shares over and above the existing market rate if he or she wishes to acquire sufficient shares to exercise control over the enterprise.
  • the enterprise valuation program computes a Mean and a Median TIC value for all of the selected comparable companies.
  • the enterprise valuation program computes several performance multiples for the selected comparable companies based on performance indicators from the financial data in the financial data database of Fig. 9, and the TIC values computed in step 615.
  • Each performance multiple corresponds to a particular performance indicator, and may be expressed as :
  • the enterprise valuation program computes for each comparable company the following performance multiples: TIC/EBITDA; TIC/EBIT; TIC/Revenue; TIC/ (Debt Free Earnings); TIC/ (Debt Free Cash Flow) ; and TIC/Assets, where EBIT is Earnings
  • the enterprise valuation program After computing the performance multiples for each comparable company, then in a step 630, the enterprise valuation program computes a Mean and a Median each of the performance multiples . Next, in a step 635, the enterprise valuation program computes a coefficient of variance among the selected comparable companies for each performance multiple. The coefficient of variance is inversely proportional to the correlation of the performance multiple among the selected comparable companies.
  • the performance multiple having the lowest coefficient of variance can be presumed to be the most consistent and reliable indicator for determining the fair market value of the selected comparable companies and the subject enterprise.
  • the enterprise valuation program selects a performance multiple having a lowest coefficient of variance to be used to compute a second TIC value for the subject enterprise. For example, if the selected performance multiple is TIC/EBITDA, then the second TIC value for the subject enterprise can be obtained by multiplying the median TIC/EBITDA value for the selected comparable companies, by the EBITDA for the subject enterprise obtained from the financial data form 400. However, in a preferred embodiment, the enterprise valuation program also compensates for factors such as the relative size and performance of the subject enterprise in comparison to the selected comparable companies, when computing a second TIC value for the subject enterprise.
  • the enterprise valuation program computes a Public Comparable Adjustment Factor.
  • the Public Comparable Adjustment Factor is a sum of a Lack of Marketability Adjustment, an enterprise Size Adjustment, an enterprise Performance Adjustment, and a Transition Risk/Other Adjustment.
  • the Lack of Marketability Adjustment reflects a discounted value for the subject enterprise, compared to the selected comparable companies, based on a reduced liquidity for an investment in the subject enterprise. For example, where the subject enterprise is not publicly traded and where the selected comparable companies are publicly traded, the Lack of Marketability Adjustment reflects the fact that liquidity is valued by investors, and that an investment in the subject enterprise is less liquid and consequently has a reduced value .
  • the Enterprise Size Adjustment compensates for the relative size of the subject enterprise, compared to the selected comparable companies in the same market, recognizing that a larger company with greater assets and market share may typically command a premium in price over smaller enterprise with less market power.
  • the Enterprise Performance Adjustment compensates for significant disparities in profit, cash flow, or other performance measurements, relative to size, versus the selected comparable companies. In other words, if the subject enterprise is performing significantly below the level of the selected comparable companies, after adjusting for relative size, then the value of the subject enterprise may be even further discounted.
  • the Transition Risk/Other Adjustment reflects the reality that a purchase or major financial transaction for the subject enterprise may introduce inefficiencies or risks for the subject enterprise's future performance, and the subject enterprise's value should be discounted by this risk. Also, if there are other factors which disadvantage the subject company relative to its market competitors, this can be compensated for through applying this discount.
  • default Lack of Marketability Adjustment, Enterprise Size Adjustment, Enterprise Performance Adjustment, and Transition Risk Adjustment values may be provided to a user by the enterprise valuation Web site, for example, in the step 148 described above with respect to the automated online enterprise valuation process of Fig. 1. In that case, the user may be allowed to modify the default values though the financial data form 400.
  • the first embodiment of the second valuation algorithm 550 for the enterprise valuation program computes a second TIC value for the subject enterprise.
  • the second TIC value is computed by multiplying the median value of the selected performance multiple by the corresponding performance indicator for the subject enterprise, and then adjusting the result by the Public Comparable Adjustment Factor. This may be expressed as:
  • TIC 2A [MEDIAN (TIC/Performance Indicator) comparable companies] * [Public Comparable Adjustment Factor] * [ (Performance Indicator) subject Enterprise]
  • the enterprise valuation program computes the median value of the TIC/EBITDA performance multiple, and:
  • TIC 2A [MEDIAN ( TIC/EBITDA) comparable Companies ] * [Public Comparable Adjustment Factor] * [EBITDA subject
  • the second valuation algorithm 550 computes a value for the subject enterprise on the basis of established transactional values of comparable companies, together with the financial performance of these comparable companies.
  • the enterprise valuation program retrieves a list of selected comparable company transactions for computing a value for a subject enterprise.
  • the list of selected comparable company transactions includes information regarding transactions involving a large portion or all of the equity for comparable companies, selected by the user, having a same SIC as the subject enterprise .
  • the enterprise valuation program retrieves from the company database a transaction value and financial data for each of the comparable companies from the selected comparable company transaction list.
  • the transaction value is the value of the recent sale of a large portion or all of the equity of the company
  • the financial data includes the data shown in Fig. 9.
  • the enterprise valuation program computes a TIC for each of the companies in the selected comparable company transaction list.
  • the TIC is computed as:
  • TIC comparable company [Transaction Value] + [Debt] - [Cash]
  • next steps 720 through 745 are the same as the steps 625 through 645 in the first preferred embodiment of the second valuation algorithm 550.
  • the second embodiment of the second valuation algorithm 550 for the enterprise valuation program computes a second TIC value for the subject enterprise.
  • the second TIC value is computed by multiplying the median value of the selected performance multiple by the corresponding performance indicator for the subject enterprise, and then adjusting the result by the Public Comparable Adjustment Factor. This may be expressed as:
  • TIC 2B [MEDIAN (TIC/Performance Indicator ) comparable
  • the enterprise valuation program computes the median value of the TIC/EBITDA performance multiple, and:
  • TIC 2B [MEDIAN ( TIC/EBITDA) comparable Transactions] * [ Public
  • T IC sub l et Enterprise Weight ⁇ *T I C ⁇ + Weight 2 *TIC 2 ,
  • a fair market value for the subj ect enterprise, FMV ⁇ u b 3 ect Enterprise/ is computed using Equation 1 above , that is :
  • an automated on-line valuation process in a distributed computing environment can simultaneously perform enterprise valuation exercises for many users located remotely throughout the world.
  • a user can perform an enterprise valuation exercise by interacting with the enterprise valuation program via a supplied interface, and without downloading any software onto his or her computer.
  • a user may store the valuation data and valuation results for a particular valuation exercise on a remote storage device associated with the distributed computing system, such as an Internet Web site.
  • the automated on-line valuation process also includes security features to prevent unauthorized access to a user's valuation data.
  • changing market assumptions may be automatically entered into the enterprise valuation process without requiring user entry.
  • market assumptions such as discount interest rate, control premium, prime lending rate, etc. are automatically linked into an enterprise valuation program from external information sources, such as the Internet.
  • the automated on-line valuation process employs multiple valuation algorithms to produce a more reliable and robust enterprise valuation, including analyzing dynamic aspects of the subject enterprise, such as the subject enterprise's discounted cash flow.
  • the comparable company database utilizes current public company financial information to enhance the accuracy and timeliness of the valuation.
  • the enterprise valuation program may employ more than two valuation algorithms for computing TIC.
  • both a comparable transaction algorithm, as well as an enterprise comparable algorithm may be used in addition to the discounted cash flow algorithm.
  • the first and second valuation algorithms of the enterprise valuation program each compute a value for the subject enterprise by adding the enterprise's cash and subtracting the enterprise's debt from the TIC, and then the enterprise valuation program computes a weighted average of two values to produce a fair market value.

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Abstract

La présente invention concerne un procédé automatisé d'évaluation en ligne d'entreprises fonctionnant dans un environnement informatique distribué. A cet effet, un utilisateur en ligne lui envoie des données financières actuelles et projetées sur l'entreprise à évaluer, ainsi qu'une liste sélectionnée d'entreprises comparables, ce qui permet au procédé d'établir une valeur équitable de l'entreprise selon les règles du marché. Ce procédé automatisé d'évaluation en ligne d'entreprise peut s'exécuter simultanément pour plusieurs utilisateurs éloignés, sans qu'il y ait besoin d'installer de logiciel spécialisé. Un utilisateur peut conserver les données et résultats de l'exercice d'évaluation au niveau de l'ordinateur hôte pour le procédé automatisé d'évaluation en ligne d'entreprise (400) et y revenir plus tard pour une révision des informations et autres données financières actuelles et projetées de l'entreprise considérée avant de mener un autre exercice d'évaluation d'entreprise.
PCT/US2000/019124 1999-07-16 2000-07-13 Procede et systeme automatise d'evaluation en ligne d'entreprises WO2001006431A1 (fr)

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JP2017107561A (ja) * 2015-12-07 2017-06-15 エクイティ・エックス株式会社 情報処理装置、情報処理方法及び情報処理用プログラム
US11410111B1 (en) 2018-08-08 2022-08-09 Wells Fargo Bank, N.A. Generating predicted values based on data analysis using machine learning

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AT501028A1 (de) * 2001-09-27 2006-05-15 Siemens Ag Oesterreich Verfahren und vorrichtung zur bewertung von börsekursen
AT501028B1 (de) * 2001-09-27 2008-08-15 Siemens Ag Oesterreich Verfahren und vorrichtung zur bewertung von börsekursen
JP2017107561A (ja) * 2015-12-07 2017-06-15 エクイティ・エックス株式会社 情報処理装置、情報処理方法及び情報処理用プログラム
US11410111B1 (en) 2018-08-08 2022-08-09 Wells Fargo Bank, N.A. Generating predicted values based on data analysis using machine learning

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