Import Instructions & Post-Import Checklist MoneySoft Business Valuation Specialist

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1 Import Instructions & Post-Import Checklist MoneySoft Business Valuation Specialist In order to use any data files created with Corporate Valuation Professional or PPC s Business Valuation Specialist (the legacy programs ), you have to first import the data into MoneySoft Business Valuation Specialist (BVS). The import tool is located in BVS under the File > Import data from data file to new data file menu. Detailed import steps are provided below. BVS includes many differences from the legacy programs. Therefore, after importing, there will be differences in the valuation methods and conclusions that you need to address. MoneySoft recommends that you work through the checklist in this document for each legacy file that you import. The checklist will help you identify and address all of the differences. Legacy Versions Supported by Import Tool BVS will only import from certain versions of the legacy programs. To determine the version of your legacy program, open the legacy program and select the Help > About menu. Legacy Versions Supported by Import Tool: Corporate Valuation Professional 3.0 and higher. PPC s Business Valuation Specialist 4.0 and higher. Import Instructions 1. Run MoneySoft Business Valuation Specialist but do not open a file. If you have a file open, select File > Close to close it. 2. Select the File > Import data from data file to new data file menu and you will see the Import Data File window. 3. Click on the Import From button and you will see the Open Import File window. Important Note: In the Files of type list box, select Corporate Valuation Professional Files if importing from CVPro or select MoneySoft Business Valuation Specialist Files if importing from PPC s Business Valuation Specialist. After selecting the file type, navigate to the folder that contains your legacy files. Select a legacy file and click on the Open button. 4. Click on the Import To button, give the new import to file a name and click on the Save button. 5. Click on the Import Now button to execute the import. You will receive a confirmation message when the import is complete. 6. Open the newly created Import To.BVS file in the normal fashion. 1 P a g e

2 Checklist After Importing The following checklist includes all the items that you may need to edit, update, complete or otherwise address after importing from a legacy file. MoneySoft recommends that you work through this checklist for each legacy file that you import into MoneySoft Business Valuation Specialist. Historics (Unadjusted) > Setup Information General Information: Complete the Website and fields Industry Information: Complete the Additional Business Activities Financial Statements: Select additional Types of Statements, if applicable. Interim Income Statement & Adjustments: You can add a Trailing Twelve Month Statement Valuation > Subject Company Data Used in Valuation > Historic Earnings Summary: In the Discretionary Earnings area, complete the Adjustment lines, if applicable. FCF-Equity: Complete additional adjustment line items, if applicable. FCF-TIC: Complete additional adjustment line items, if applicable. Subject Company Data Used in Valuation > Projected Earnings Summary: In the Discretionary Earnings area, complete the Adjustment lines, if applicable. FCF-Equity: Complete additional adjustment line items, if applicable. FCF-TIC: Complete additional adjustment line items, if applicable. Valuation Setup > Setup Form > Report Preparer Information Complete the Preparer Credentials, This is used only in the report writer. Complete the Additional Preparer Information, This is also used only in the report writer. Valuation Setup > Setup Form > Valuation Assignment Select the Applicable Standard of Value from the list. Your selection controls the standard of value language in the report. Add the Date of Report / Appraisal. This is used only in the report writer. Complete the details in the Valuation Prepared on Behalf of: section. This is also used only in the report writer. 2 P a g e

3 Valuation Setup > Setup Form > Benefit Stream Assumptions Verify that the appropriate benefit stream is selected in Step 1. Please note that Net Cash Flow (i.e., net change in cash) has been removed and replaced by Equity Net Cash Flows. Verify that the appropriate weights are entered in Step 2. Earnings and Cash Flows now have separate weights and you can also include Next Year in your weights. Verify that the appropriate timeframes are selected in Step 3. Timeframes are now separated for the Income Approach and Market Approach and additional timeframe options are available. Valuation Setup > Ownership / Control Complete the information requested in this new screen to identify the relevant ownership/control blocks as of the valuation date. This information is used only in the report writer. Value of Preferred, Debt & Nonoperating Preferred Stock: Add any additional tranches and complete the new dividend Yield fields. Important Note: The value of Preferred Stock is now automatically deducted in each valuation method and not in the Conclusions as was done in the legacy programs. This can cause a difference in each valuation method. Debt & Nonoperating: Enter the Market Interest for all Interest-Bearing Debt items. Debt & Nonoperating: Complete the additional items for Nonoperating Assets and Liabilities. Asset Approach > Net Asset Value Intangible Asset Value: Enter values for identifiable intangible assets. Net Asset Value: Add any Other Adjustment, if applicable. Net Asset Value: Enter an Indicated Equity Value if you want this value indication to carry forward. Asset Approach > Liquidation Value Liquidation Value: Add any Other Adjustment, if applicable. Liquidation Value: Enter an Indicated Equity Value if you want this value indication to carry forward. 3 P a g e

4 All Market Approach Methods (BIZCOMPS, IBA, Done Deals, Pratt s Stats, Other Data Source, Guideline Public Company and FactSet Mergerstat) Enter any additional transaction detail for each transaction For Done Deals, add the Price to EBITDA multiple for each transaction For Pratt s Stats, multiples now have modified definitions. Verify that the imported multiples match up to the modified multiple definitions. Equity Conversion Screens: Enter any adjustments for the subject company for assets not typically transferred and any liability adjustments to convert to an equity value. Equity Conversion Screens: Enter any Adjustment for Level of Value necessary to bring the calculated value to an Enterprise-Level Equity Value. Equity Conversion Screens: Enter an Indicated Equity Values for each value indication that you want to carry forward. Market Methods with Stock and Asset Transactions: (Done Deals, Pratt s Stats and Other Data Source) For each transaction, select the Type of Transaction as either Asset, Stock or Unknown. Asset and Stock transactions are separated and treated differently in BVS. Transactions with a type of Unknown are now discarded. Stock / Asset Reconciliation: Enter to weights to blend any stock and asset value indications and reconcile them to a single value indication for each multiple group Beta Data Enter Beta factors to use in the CAPM discount rate method You can enter Betas for guideline public companies, Industry Betas and Index Betas. Be sure to enter a Selected Beta in at least one of the forms. Income Approach Discounted Equity Net Cash Flows: Note that this method now uses Equity Net Cash Flows in place of Net Cash Flow (i.e., net change in cash). Discounted Equity Net Cash Flows and Discounted Future Earnings: Note that the first projected period will include a partial year cash flows and earnings if the Interim financials are enabled in the Historics (Unadjusted) > Setup Information > Financial Statements screen. Also, the discounting calculations will be adjusted to accommodate a partial first projected year. Capitalized Earnings > Return on Net Tangible Assets: Complete the additional fields for Collateral Value, Market Interest Rates, Adjustments, Tax Rate and Return on Equity. For each valuation methods, enter an Indicated Equity Value if you want the value indication to carry forward. 4 P a g e

5 Approach-Level Conclusions Select conclusions for each Market data source Select conclusions for the Asset Approach, Income Approach and Market Approach Conclusions of Value > Equity Value Conclusions > Enterprise Equity Value In Step 1, select each value indication that you wish to include in the report. In Step 2, assign weights to each selected value indication. In Step 3, enter a single value or range of values for your Enterprise Equity Value Conclusion. In Step 4, enter any enterprise-level premiums and/or discounts and select a value conclusion after adjustments. In Step 5, enter the number of Non-Voting Shares and a Premium for Voting Shares Conclusions of Value > Equity Value Conclusions > Test of Value Enter the amount and terms of funding for a hypothetical purchase/sale transaction Select any Rule of Thumb options from the 2 lists and enter the associated multiples Conclusions of Value > Equity Value Conclusions > Shareholder-Level Value In Step 1, enter the details for any dilutive Convertible Preferred stock and for any In-The- Money Options/Warrants In Step 2, enter the Percentage Valued and select voting/non-voting and with or without dilution. In Step 3, enter any shareholder-level premiums and/or discounts and select a value conclusion after adjustments. Report Writer For any custom report templates, copy and paste your editing changes into new BVS report templates. 5 P a g e