Our Objective  BankerValuation was created to help our commercial lending clients with their internal business valuations. Internal models currently available to our clients are very user-subjective and can be manipulated quite easily. Our objective was to create a user-friendly business valuation tool that required minimal non-subjective inputs with the final report being able to pass audit reviews. Invaluable Industry Statistics  BankerValuation keeps a proprietary list of private transactions. These recently sold businesses all were financed through the Small Business Administration (SBA), thus giving a direct comparison based on long-term financing. Valuation Methodology  The BankerValuation technology is based upon the market method and income method with two important variables in mind: Variable 1. The first variable includes market multiples of similar companies that have sold using long-term financing. This is important in that when long-term financing is being used (more than 5-7 years), terms become more favorable and the price of the business may increase. The comparables used in this valuation are considered direct comparables to the company being valued. Variable 2. The second variable is a modified build-up rate, which is based on a proprietary “Risk-Reward Rate” or “R3”. R3 was developed with the help of over 100 credit analysts, SBA underwriters and appraisers. R3 is based upon direct questions that are answered by the user and the model gives it a risk rating. This risk rating then is calculated into a capitalization rate for EBITDA (adjusted earnings before interest, taxes, depreciation and amortization). The inputs are based on the modified build-up approach, where the input is a multiple, which is the inverse of a capitalization rate. If entered correctly, the capitalization rate is nearly accurate when comparing the subject Company to its peer group and gives a very accurate value based upon what other investors are paying for similar companies with similar risk.  The BankerValuation.com model gives the user a range of values that best supports the Company’s true market value based upon normal SBA deal terms, risk analysis, financial analysis, trend analysis and market multiple analysis.