
			Business Valuation – Level 2 (Cash Flow, Market-Based, Scenario Analysis) Typical valuations are based on static enterprise projections that do not reflect the “realism” of uncertainty that prevails in private businesses. EquityNet incorporates this uncertainty into its Level 2 Business Valuation by performing scenario analysis on the business model and producing a range of valuation estimates that reflect reasonable variations in the business’s assumptions. EquityNet leverages its unique quantitative approaches and proprietary market data to offer a valuation result that empowers clients to understand: The maximum, the most likely, and the minimum valuation for a business The sensitivity of the valuation to variations in business assumptions The cause-and-effect relationship between business assumptions and its valuation EquityNet develops a dynamic quantitative model of the business that includes the primary input (e.g., average selling price) and output factors (e.g., cash flow) of the business’s operational model. EquityNet analysts consult with the management of the business to understand the assumptions that underlie projected operational and financial metrics and to also compare such metrics to benchmark empirical data for businesses of like character (i.e., Industry Sector and Maturity). Input factors are then varied within reasonable ranges to produce a scenario-based output and valuation. *Quantitative Model Output – Free Cash Flow Scenarios* *Estimated Enterprise Valuation for each Scenario Case* EquityNet’s unique valuation service enables clients to better estimate the value of a business based on an understanding of how that value varies with changes in business assumptions.