Equidam provides a web-based valuation tool with a clear and simple user interface. The tool uses five different valuation methods: scorecard, check-list, venture capital, DCF with long-term growth, and DCF with multiples. More about the methods can be found from the Equidam methodology. The scorecard and check-list methods are suitable for pre-revenue valuation (before company has any financial information available).
Equidam requires you to input financial information manually along with some specifics of the company, such as the composition of the management team. After finishing the valuation, Basic and Pro subscribers can download a valuation report. It includes all key figures, but lacks details, as it consists mainly of just simple illustrations of the results without more precise knowledge behind the methods. On the other hand, Equidam provides an appendix explaining the Equidam methodology. Equidam’s business valuation methodology is available as a download, as well as a free sample of Company Valuation Report.
How to use Equidam?
The valuation process has following steps: basic information, extensive questionnaire, financial information (balance sheet and income statement), and transaction information.
The Equidam web-page is easy-to-navigate. The front page has multiple links to free sign up. During the sign-up, you must enter the reason of valuation and after that, answer to a questionnaire about the company. The questions include the sector and some basic information about the company (the year founded, current development phase, etc). The questionnaire takes few minutes and afterwards you can see a rough valuation estimate.
After that, to get more comprehensive valuation, you need to answer extensive questionnaire. It consists of more in-depth questions about the company’s team, business model, product and market, and IP and legal aspects, consisting of 54 questions in total.
Then, you must input financial data, including some basic income statement figures (such as revenues, cost of goods sold, net profit) and simple balance sheet data consisting of some asset and liability figures. The income statement figures are given for the past year and for three subsequent years, where as balance sheet data is given for the past fiscal year.
The final part is to input the transaction data, i.e., how the funds are allocated between different items (such as working capital, product development, etc).
Report and results
After inserting all information, you can choose to print the report (available for Basic and Pro subscribers). Pro subscribers can also change advanced settings, including weights of different methods, depending on the characteristics of the company (some methods are more applicable for companies in certain phase). The result is available on the “Dashboard” page, which shows valuation according to different methods as well as valuation history and comparison to peer companies.
Equidam provides a single figure of the valuation for all users as well as method-specific valuations for subscribing users. The valuation results is available on the front page (Dashboard). Equidam provides also an appendix on the methodology behind the valuation for the PDF report, as the report itself lacks detailed description about the methods.
If you’re having any trouble using the system, Equidam has also an online-chat support.
- Uses a variety of methods
- Requires extensive input values
- Lacks valuation based on multiples
- Limited market and peer data
- Three-method valuation
- Three PDF reports per month
- 89 €/month or 749 €/year
- Unlimited PDF reports