	US 12,243,108 B1
	System and method for providing financial valuations of entities
Brandon M. Bieron, Amherst, NY (US); Ryan T. Dobos, East Amherst, NY (US); Jonathan Kolozsvary, Fairport, NY (US); and Gavin P. Musynske, East Amherst, NY (US)
Assigned to Manufacturers and Traders Trust Company, Buffalo, NY (US)
Filed by Brandon M. Bieron, Amherst, NY (US); Ryan T. Dobos, East Amherst, NY (US); Jonathan Kolozsvary, Fairport, NY (US); and Gavin P. Musynske, East Amherst, NY (US)
Filed on Jul. 31, 2022, as Appl. No. 17/878,028.
Claims priority of provisional application 63/228,072, filed on Jul. 31, 2021.
Int. Cl. G06Q 40/12 (2023.01)

CPC G06Q 40/12 (2013.12)

8 Claims

1. A method for determining a financial valuation for a business comprising:

receiving a set of user inputs comprising at least one of the following: a total income, a cost of sales, a total expense, a depreciation, an amortization, a shared-based compensation, an owner compensation, a cash and marketable security, and a long term debt;

receiving a set of fixed inputs comprising at least one of the following: a discount rate, and a tax rate;

calculating at least one financial valuation using a modified discounted cash flow valuation method;

determining when a trigger condition has been met based on the at least one financial valuation; and

when the trigger condition has been met, sending a business owner a recommendation to take a subsequent action,

wherein the step of calculating at least one financial valuation comprises the steps of:

calculating a gross profit from at least one of the total income and the cost of sales;

calculating an earnings before interest and taxes from at least one of the gross profit and the total expense;

calculating a taxes from at least one of the earnings before interest and taxes and the tax rate;

calculating an earnings before interest from at least one of the earnings before interest and taxes and the taxes;

calculating a gross cash flow from operations from at least one of the earnings before interest, the depreciation, the amortization and the share-based compensation;

calculating a historical free cash flow from at least one of the gross cash flow from operations and the owner compensation;

calculating an annual growth rate from the historical free flow;

repeating each of the steps from calculating the gross profit through calculating the annual growth rate for each year of data from the set of user inputs and the set of fixed inputs;

calculating an average annual growth rate from the annual growth rate calculated for each year;

calculating a future free cash flow from at least one of the historical free cash flow and the average annual growth rate;

calculating a net present value free cash flow from at least one of the future free cash flow and the discount rate; and

calculating the at least one financial valuation from at least one of the net present value free cash flow from at least one of the net present value free cash flow, the cash and marketable securities, and the long term debt.