Valuation methodology

How Value2Exit produces indicative valuations and exit readiness scores — and what they are and are not.

1. Inputs

You provide basic business details: revenue, sector, location, and growth. A valuation run may also accept a UK company number to pull public register data (Companies House) and, where configured, aggregated diligence signals.

2. Weighted model

The engine applies a weighted scoring model across financial, market, and operational dimensions. Each dimension is benchmarked against industry data and regional norms, then blended into a single indicative range with a confidence score.

  • Financial inputs (revenue, margin, growth) carry the heaviest weight.
  • Market signals (sector multiples, regional economic data) adjust the range.
  • Operational factors (recurrence, concentration, staff) feed exit readiness.

3. Exit readiness scoring

Exit readiness is scored across financial, market, and operational sub-scores. Each sub-score identifies strengths and the gaps that typically drag a transaction multiple — e.g. customer concentration, dependency on key staff, or missing disclosure. The output is a directional readiness score plus a remediation view, not a guarantee of sale.

4. Data sources

Valuations triangulate public company register information, industry benchmarks, and live global economic signals from sources including the World Bank, IMF, UN Data, BIS, WTO, and ILO. These are aggregated and refreshed on a schedule.

5. Limitations

  • Results are indicative and directional — not formal appraisals and not advice.
  • The model generalizes across sectors and regions; a professional valuation may differ materially.
  • Confidence scores reflect model agreement with benchmarks, not a probability of achieving a sale price.
  • For transactions, tax structuring, or legal matters, instruct qualified regulated advisers.

6. Verification and reports

The Verified Value Report walks sellers up a staged disclosure ladder (0–3) so buyers can assess a business with verified facts rather than claims. Verification does not change the valuation model — it changes how much of the business is verifiably true at the point of review.

Last reviewed: 2026-08-02. See About Value2Exit for company context, or run a valuation.

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