Our ThruThink Evaluation® service provide an evaluation of a proposed "Deal" or comparative benefit to the Owner as presented by the User Inputs. Our ThruThink Deal Score® service provide an evaluation of the proposed "Deal"; which includes a calculated score or rating based on the User inputs. The ThruThink Evaluation® service evaluates proposed business transactions that involve the purchase, sale, valuation, debt analysis or equity analysis of a business using proprietary calculations from user inputs for the business's past performance, existing financial condition and projected future performance. These factors along with the specific debt, equity structure and Owner Draw requirements will address the ultimate performance measure of the "Deal", "Does it Make Sense".
As EBITDA comes as a result of the net effect of income and expenses prior to interest, taxes, depreciation and amortization, ThruThink® incorporates the ability to determine EBITDA by using Gross Sales performance and Cost of Goods Sold (COGS) percentages, along with summary General Operating Expenses. This is to illustrate sales and expense levels that are contemplated in arriving at the projected EBITDA.
Our ThruThink Evaluation® service begins where an operational budget ends. The Users Operational Budget is best used as a basis for the ThruThink® inputs, however the User can decide on these inputs as they are entered.
There is a historical worksheet feature in ThruThink® that the User can utilize to analyze historical sales and operating expenses that will clarify the most useful numbers to use for the ThruThink® Inputs. This historical information is also used as an evaluation factor in the ThruThink Deal Score®.
With the proper information provided, the process will illustrate risks of running short of funds in future periods, which will then be feedback information to adjust the business purchase price, terms, debt, equity and or business operations prior to unexpected cash shortage occurrences and/or the eventual unsatisfactory profit and equity performance.