Patent ID: 8630884

Claim:
A computer-implemented system for generating an updated numerical business health score comprising: a tangible computing processor; a network port in data communication with the processor and operative to couple the processor to a network; a non-transitory computer readable storage device in data communication with the processor and having encoded thereon computer executable instructions operative to implement: a graphical user interface operative to query a score requester to input updated information of a company that has changed subsequently to a previously completed calculation of a business health score of the company that was calculated using original information of the company that was input by the score requester; a query engine operative to query third party locations on the network for updated information related to the company that has changed subsequently to the previously completed calculation of a business health score of the company that was calculated using original information related to the company that was obtained from the network; a business health score engine having a plurality of rules and operative to calculate, in accordance with the plurality of rules, the updated numerical business health score of the company using the updated input information of the company and the updated information related to the company from the third party locations; and a reporting engine operative to deliver the updated numerical business health score in a report to the score requester; wherein the calculating the updated numerical business health score includes: calculating a multiple-year-weighted average of at least one of revenue, pretax income, and inventory; determining a valuation multiplier based on at least one of a North American Industry Classification System (NAICS) code, a projected revenue growth, and a long term earnings before interest, taxes, depreciation and amortization (ebitda) margin; calculating a seller's discretionary earnings (SDE) value as at least a sum of year-weighted averages of pretax income, salary, benefits, interest expenses, and costs, and adjusting for inflation; adjusting the SDE based on year-over-year pre-tax income growth and year-over-year revenue growth; calculating a valuation of the company based on a product of the SDE and the valuation multiplier, adjusted based on at least one of recurring revenue as a percentage of total revenue, a number of patents owned, and a percentage of sales from a select number of top customers of the company; and using the valuation of the company to calculate the updated numerical business health score.