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Purpose: The purpose of this estimator is to provide the user with a quick and easy (albeit relatively inaccurate) idea of what a given firm might be worth.
The results from this estimator are just what it says it is: A Ball Park Estimate. The algorithm used simply applies a mathematical formula based on standards and norms within our profession. For instance: Cash advances are automatically assumed to be 20% of gross revenue.
As a consequence, the results do not allow for professional judgment or experience which are both essential for a firm opinion. Your operating results may differ from industry norms for better or worse. It is reasonable for you to expect the final results of an actual opinion to vary significantly.