Client Background
PeerComps, a division of GCF Valuation, is an online business valuation portal. It provides valuation professionals, intermediaries, bankers, lawyers, brokers, buyers and sellers with the most reliable transaction data possible on comparable transactions for small businesses with annual revenue of between $250,000 and $5 million (average revenue of $1 million).
PeerComps collects data from unbiased sources, gathered from national, regional and local Small Business Administration lenders across the United States. The data encompasses all major industry classifications, including specialized industries.
PeerComps was originally created by GCF Valuation, a firm specializing in valuing small to mid-size businesses and professional practices. GCF currently works with over 100 SBA lenders throughout the U.S. These relationships have allowed for the gathering and analysis of transaction data specific to SBA lending.
Business Challenge
PeerComps collects data from several major business information sources and needed a system that aggregated the information in a clean and concise way, making it easy to read and easy to use. Their goal was to create a business valuation model that utilizes actual comparable transactions and proprietary risk formulas to calculate an accurate and defendable valuation in real time. They required a robust software solution to support and automate this business valuation process.
They envisioned a comprehensive repository/database that housed all of the business listings, sales, comp, and transaction data that could be easily accessed via intuitive search and filter functions. PeerComps wanted to be able to provide all of the “what if” scenarios for users and therefore needed a technology partner that understood all of the different parts and a system that could accommodate all of the variables that represent those points of entry.
Solution
MethodFactory worked with GCF Valuation on their generation-1 custom valuation application, which uses a five-part questionnaire to create a business appraisal for small to mid-size businesses. GCF Valuation returned to MethodFactory to develop PeerComps – a custom-developed self-serve application, which enables users to create business comparisons and valuations in real-time, using a suite of wizard-based data entry screens.
With a private login, subscribers can access transaction information based on categorization and a number of filters. The intuitive and powerful search interface allows the user the ability to search multiple criteria simultaneously and view the summarized data in real time. Search fields and criteria include: business type, North American Industrial Classification System (NAICS) code and industry classification, transaction state, date range, revenue, assets, and seller’s discretionary and adjusted earnings. A keyword search function helps expedite results based on even more targeted data.
Valuations are then calculated by using several different valuation models, and results are generated automatically and displayed immediately. Results can be viewed in a summarized table where individual transactions can be selected and drilled into for more detail in a snapshot format. Transaction results can also be easily adjusted by simply deselecting comparables and updating the outcomes. Finally, the results generated by the system can be printed as a PDF, exported to Excel and/or saved to a personal workspace where the user can keep a history/log of previous searches and findings.
Technologies
- MethodFactory System Design
- .NET Application Development
- System Integration
- Managed Hosting
- Application Support
Go to www.peercomps.com