Patent ID: 7979332
Filing Date: 2011-07-12
Classification: G06Q

Abstract:
1. A data processing system for valuing a business including a hardware component including a. processing means for processing data; b. storage means for storing data; c. input means for inputting data related to the financial performance of a business to be valued, including at least an income component, and an expense component into the processing means; d. input means for inputting an assumed business capitalisation rate (BCR) appropriate for the business and industry of the business to be valued into the processing means, the assumed BCR established by assessing the business background for the business to be valued and establishing value optimization factors that determine business value in the light of the business background and the relevant industry of the business to be valued; e. the processing means is adapted for calculating a weighted average notional earning before interest and tax (WANEBIT) based on historical financial records of the business to be valued; and f. the processing means also being adapted for generating a calculated net business value using the WANEBIT and the assumed BCR; g. the processing means also adapted for checking that the assumed BCR used is valid by calculating a peak notional business value ratio (PNBVR) of net business value from step (e) to total income for an appropriate historical period, calculating WANEBIT as a percentage of total income for the appropriate historical period, calculating a calculated business capitalisation rate as a ratio of PNBVR to WANEBIT as a percentage of total income, and comparing the calculated business capitalisation rate to the assumed BCR.