Valuing Businesses Using Regression Analysis

CHAPTER 11Excel Valuation Template

This chapter will include screenshots of the eight Excel worksheets that comprise the regression template that is included with the purchase price of this book. Literally everything you learned about the regression methodology presented here will be implemented by the click of a button in the blink of an eye.

WORKSHEET #1: DATA ENTRY

The first worksheet in the template is the “Data Entry” worksheet. At the minimum you will need to fill in columns a, b, and c in Exhibit 11.1 with the transactional data for selling price, revenue, and SDE cash flow. If your subject carries inventory as a major source of revenue, I highly recommend filling out column d with inventory data. As was discussed in Chapter 9, if the subject generates a significant portion of its revenue from the sale of inventory (retail, wholesale, or manufacturers are most common), it is critically important to select only those comparables that reported that inventory was sold. Do not use comparables that indicate that no inventory was transferred in the sale.

EXHIBIT 11.1 Excel Template—Data Entry Worksheet

If you wish to include the multiple variable regression analysis in the final reconciliation of values, then fill in column e with the fixtures and equipment data. If you do not wish to include inventory or fixtures in the table, click the “Hide Inventory Columns” or “Hide ...