Sunday, April 20, 2014

Business Valuation: Get a Better Value

Get a Better Value

Why the Murray & Roberts Calculation of Value (found at is the best in the industry

Everyone claims their product is the best: the best engine oil, the best cellular service, the best hand-held power tools.  Isn’t Murray & Roberts claim that their Calculation of Value product, the ‘MRCOV,’ is the best among its peers more promotional puffing?  Actually not.  We can prove it.

We can prove that the estimate of value produced by our product has a higher probability of reflecting the true value of your business than our competitors.  The answer is printed before you in black and white.  Most CPA firms offering calculation of value services provide a sample report on their websites (as we do).   We downloaded them and compared them to ours.

These reports tend to be full of industry jargon, non-specific legalese, and wordy disclaimers, which makes pushing through them difficult (we’ve tried to be better than the industry here too, but we also have lawyers.)  It will become evident as you read our competitors’ reports that they employed one method only – the income approach – to determine the value of your business.  The MRCOV calculates the value of your business using all three of the standard valuation approaches: asset, income, and market.  Obviously using three approaches to determine value is much more comprehensive than just one, and has a higher probability of determining the most accurate value.

Further, the MRCOV is the only report which also considers external industry data from two separate and widely recognized sources of industry research.   Our competitors’ reports did not include any external industry data into their analysis.  The MRCOV also considers: the expected future growth rate of the business, customer concentrations, optimum capital structure, and excess/under working capital.  Most of our competitors did not factor any of these significant conditions into their estimate of value.

The fact is, the limited procedures conducted by our competitors are so extremely limited that there is a high probability their calculation of value will fail to consider business or industry conditions that would materially alter the value estimate of your business.

In developing our COV product, we took sample data from dozens of full valuation reports prepared by our firm and honed our mathematical model until our calculation of value consistently produced value estimates within 5% of the values determined by full valuations.  Our MRCOV in most cases will produce an estimate of value within 10% of the value arrived at by full valuation.  At a cost of only $499, it costs less than 10% of most full valuations - an amazing value.

Find out for yourself at  

The MRCOV is an excellent tool for wealth planning, business investment planning, goal setting, and more.  

Brian Murray CPA/ABV CVA
Murray & Roberts CPA Firm SC

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