Financial and sector diagnosis
Analysis of the statements, market trends and competitors, to place the value in the right context.
VALUATION
How much is your business worth? A professional valuation, built together
SBC values private companies and businesses in Israel ahead of a sale, a new partner, a capital raise, a shareholder dispute or planning. The valuation combines several methods, including DCF and market multiples, and is presented as an explained value range with its assumptions. For a first check on your own, use Equify, the SBC valuation engine.
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A private company has no share price that updates every day. So everyone across the table, a buyer, an investor, a partner or a bank, arrives with a valuation of their own and an interest of their own. A proper valuation gives you your number before they present theirs, and explains what it rests on.
At SBC a valuation is work on your statements: we normalise earnings, build a forecast, run several methods in parallel and cross check them. Value is not price: what a buyer or investor actually pays is set in negotiation. The valuation gives you an anchor to test every offer against. Behind SBC are ₪800M in transactions and financing supported and 15 years of combined experience.
Why SBC
Accepted methodologies
Work by accepted methodologies, prepared for presentation to your accountant and your board.
Several methods together
DCF, market multiples and comparable transactions, calibrated and cross checked.
Clear deliverables
A report, appendices, an executive summary and an explanation call. The scope is set in the proposal.
Transparent assumptions and sensitivity
The sources and parameters in detail, and the effect of each one on the value.
Agreed timetable and price
A timetable and a price agreed in advance in the proposal, and the information kept confidential.
When a business needs a valuation
A valuation is needed whenever someone has to put a price on the company or on part of it. A valuation for a sale is built differently from one for a raise or for settling a dispute, so the first question is always what it is for, and who will read it.
When a dispute reaches a court or arbitration, or the valuation is needed for the financial statements or the tax authorities, further requirements apply to the valuation and to whoever prepares it. We check this in advance with your lawyer and your accountant.
- Selling all or part of the company: before approaching buyers, to know the reasonable range and when an offer is far from it
- Bringing in a partner or a strategic investor: the value sets how much of the company the partner receives for what they bring
- Raising capital: the pre money value sets how much of the company you give for the amount you raise
- A dispute between shareholders, dissolving a partnership, an inheritance or a divorce: when one side leaves, both sides need a number they can check
- Planning: whether to sell now or wait, a business plan for the coming years, or ownership ahead of a transfer between generations
How a company is valued: DCF, multiples and the asset approach
There is no single right method. Each one answers a different question, so we run several and compare them. When the results are far apart, it is a sign to check an assumption, not to pick the convenient number.
In a private company we also adjust for the fact that the shares are not traded on an exchange and are harder to sell, and we explain that adjustment in the report rather than leaving it inside the model.
- DCF, discounted cash flow: the cash the company will generate in the coming years, discounted to today at a rate that reflects the risk (WACC). Suits a company with a forecast that can be supported
- Multiples: comparing the company with public companies and similar transactions, by a multiple of EBITDA, earnings or revenue. Easy to understand, but only as good as the comparison behind them
- Asset approach: the value of the assets less the liabilities. Suits mainly holding and real estate companies, or a company whose earnings do not reflect what it holds
A first valuation check on your own, with Equify
Before ordering a full valuation, you can get a direction. Equify, the SBC valuation engine, runs four models in parallel: DCF, EBITDA and revenue multiples and the asset approach, and is calibrated to the Israeli market. You run it yourself at equify.co.il.
The result is an indicative value range. When the number has to stand in front of a buyer, an investor, an accountant or a board, you need a full valuation on your statements, with normalised earnings, a supported forecast and assumptions you can present. That is done with SBC, and the initial review is free of charge.
How we work with you
Diagnosis
A first conversation on the purpose: a sale, a partner, a raise, a dispute or planning, and who will read the valuation. If you ran Equify, we start from the result. The initial review is free of charge, and at its end it is clear which valuation you need and its scope.
Documents
We collect the statements, the breakdown of revenue and debt and the forecast, and normalise earnings with you. Every expense taken out is documented, so you can explain it to whoever checks.
Submission and competition
We run the methods, cross check them and present the report to you: the value range, the assumptions, the scenarios and the sensitivity analysis, on an explanation call. When the valuation is part of a sale or a raise, it is the basis for approaching several buyers or investors in parallel.
Negotiation and closing
In a deal, the valuation is the anchor of the negotiation: we compare every offer with the range and the assumptions. For internal use, this stage is closing the final report after your comments and your accountant’s.
Support after closing
Value changes with results and with the market. When new statements arrive or a decision approaches, the model can be updated instead of starting again, and used in the next raise, financing or deal.
What we need from you for a valuation
- Financial statements for recent years, audited if available
- A current interim report or trial balance
- A budget or forecast for the coming years, if there is one, and its assumptions
- A breakdown of revenue by customers, products or lines of business
- The debts, loans, shareholder loans and material liabilities
- The ownership structure, the shareholders’ agreement and any earlier transactions in the company’s shares
- The purpose of the valuation, and who will read it
Calculator
Company valuation calculator: an indicative value range
The SBC company valuation calculator gives an indicative value range for a private company from three inputs: annual revenue, EBITDA margin and sector. It is the same calculator as on the Hebrew home page. For a full valuation, with statements and sector adjustments, continue to Equify. The result is an indication only.
An indication only, not an offer and not a commitment. Actual terms are set by the lender, based on the full file.
The result
- Indicative value range
- ₪12.3M to ₪17.8M
- Low estimate
- ₪12.3M
- High estimate
- ₪17.8M
Indicative value range: ₪12.3M to ₪17.8M.
A first indication from three inputs only. A full valuation looks at the statements, the quality of earnings and sector adjustments.
Indicative value range: ₪12.3M to ₪17.8M.
Questions and answers
How much is my business worth?
The answer is a range, not one number, and it depends on normalised earnings, growth, risk, the sector and the company’s debt. For a first direction you can run a check on your own with Equify. A number you can present to a buyer, an investor or an accountant needs a full valuation on your statements.
How much does a business valuation cost?
The initial review with SBC is free of charge. The price of a full valuation depends on the purpose, the size of the company, the complexity and the scope of the report, and is set in advance in a written proposal, before the work starts. When the valuation is part of advisory on a sale or a raise, the fee depends on the scope of the work.
What is an EBITDA multiple?
EBITDA is earnings before interest, taxes, depreciation and amortisation, used as an approximation of the cash the business generates. In the multiples method, normalised EBITDA is multiplied by a multiple derived from similar companies and transactions. The multiple itself varies by sector, size, growth and risk, so no single multiple fits every business in a sector.
What is the difference between enterprise value and equity value?
Enterprise value is the value of the business itself, regardless of how it is financed. Equity value is what is left for the shareholders: enterprise value less net financial debt, meaning debt less cash. A multiple of EBITDA usually gives enterprise value, and debt comes off before you know what you will receive.
Why is a buyer’s price different from the valuation?
A valuation says what the business is worth on the data and the assumptions. A price is what a specific buyer is willing to pay, on specific terms, on a specific day. The gap comes from the synergy the buyer sees, the number of competing buyers, the payment structure and the findings of due diligence.
Is an Equify check enough for an investor or an accountant?
Usually not. Equify gives a first indication, a value range that helps you understand the order of magnitude and decide on the next step. An investor, a buyer, an accountant or a board needs a full valuation on your statements, with normalised earnings, the assumptions and the appendices.
Want to check this on your own numbers?
A first conversation and an initial review, at no cost. Our fee depends on the scope of the work.
Run a first valuation on Equify →