He will turn you down before he will let you down and tell you what you need to know. Not necessarily what you want to hear. The rate an investor desires from his investment based upon the level of risk involved. The CAP is divided into the Owner Benefits less the cost of absentee management. This formula is often used to determine an approximate value of a business with high inventory or overall asset value.
Valuation is also a function of the financing terms.
Ultimately, the value of a business is determined in the marketplace based upon what comparative businesses are selling for. Valuation Report is based on certain assumptions and information supplied by third parties. No person receiving this information should rely on any conclusions set forth and is specifically instructed to make his or her own independent analysis of the business. This scoring is subjective in method. It's purpose is to create logical handles to use on the multiplier of the restructured cash flow.