Methodology
The principles behind the ValuSuite tools
ValuSuite is built around a consistent set of valuation, bridge and funding principles. Each tool applies them in its own context; the pages below explain the broad approach without reproducing every calculation.
Transparent calculations
Every figure is traceable to an input. The tools show their working rather than obscuring it behind a single number.
Maintainable earnings
Valuation rests on sustainable, normalised earnings rather than a single reported year.
Market calibration
Multiples and adjustments are calibrated to the business and its market.
Enterprise Value vs Equity Value
A clear separation between the value of the business and the value of its equity.
Working capital normalisation
Comparing actual working capital to a normalised target to identify surplus or deficit.
Cash & debt treatment
Distinguishing distributable cash, operating cash and debt-like items.
Cash-flow debt service
Assessing debt capacity through CFADS and DSCR rather than headline profit.
Scenario & sensitivity analysis
Testing outputs against downside and alternative assumptions.
Professional but indicative outputs
Outputs are structured and credible, but explicitly indicative — not formal advice.
In more detail
Valuation principles
Valuation rests on maintainable earnings — normalising reported EBITDA for non-recurring, owner-related and one-off items to derive a sustainable earnings base. A market multiple is then calibrated to the business and its sector and adjusted for quality and risk factors, producing an Indicative Enterprise Value range rather than a single point estimate.
Transaction bridge principles
The bridge separates the value of the business (Enterprise Value) from the value of its equity (Equity Value). Working capital is normalised against a target level to identify surplus or deficit; cash is treated as an equity-value credit after minimum operating cash; and debt and debt-like items are deducted to arrive at an Indicative Equity Value.
Funding principles
Funding capacity is assessed through cash flow available for debt service (CFADS) rather than headline profit. Senior debt service is measured against CFADS using the Senior DSCR, and downside sensitivity tests how coverage holds up under stress — together supporting a Lender-oriented Funding Proposal.
Tool-specific methodology
Detailed methodology lives with each tool.
Each tool publishes its own detailed methodology. Explore the relevant tool page or the live tool for the full calculation basis.
ValuSuite tools are professional and structured, but they are not an industry standard and do not replace professional judgement, formal advice, or transaction documentation. Outputs are informational and indicative.