My valuation estimate is higher than expected. What may be contributing to it?

While a higher-than-expected valuation estimate is a nice problem to have, there are typically a few contributors to this outcome.

• More Data Needed: Financials only tell part of the story, and we require supporting information to provide more insight into the normalizations that the platform should be taking into account. Providing additional information allows the valuation to be more accurate and reflective of the current state of the business. If you have not already, please complete the Accuracy Check Questionnaire.

• Current Year Data Inflating Results: When there is sufficient year-to-date data available (minimum of 6 months), the interVal platform models out the remainder of the current fiscal year to show what valuation you are on track to achieve. If the performance in the first half of your current year is significantly different, or if you typically require a large amount of year-end adjustments by your accountant that haven’t yet been entered, the platform may be overstating the estimate at this time.
  
  If the performance tracked in the current year does not continue, or if there is significant seasonality/volatility within your revenue cycles, the valuation number will likely decrease if you provide updated data later in the year.
  
  
• Significant Normalizations: There are a variety of data points that can artificially inflate valuation, including shareholder compensation (i.e. shareholders do not pay themselves), or cases where an Operating Company does not pay rent, as the property is owned by a Holding Company. Providing additional data in-platform will allow us to normalize the valuation via the Accuracy Check questionnaire.