How is the DVSCORE calculated?
The DVSCORE indicates the financial viability of a proposed business acquisition deal structure. It is calculated based on "The 6 Entries" into the DVSCORE model:
1. Cash Flow
2. Purchase Price of the business
3. Amount of the business purchase price as a Down Payment
4. Interest Rate for financing
5. Number of Months the acquisition debt is financed
6. Compensation to the New Owner
Gather the necessary financial details and make “The 6 Entries”. The DVSCORE is displayed with an instant analysis.
At any point in the business acquisition process, change one or more of “The 6 Entries” and an updated DVSCORE will be immediately calculated and an updated analysis displayed.
Consider shifting to another business acquisition opportunity if by making changes to “The 6 Entries” you can’t foresee producing a DVSCORE which is at least in the moderate deal viability range.
To attempt to “force” a business acquisition deal is unwise and risky. Devote time to find the right business to buy, and buy it the best way – beginning with a DVSCORE which indicates financial viability!