Platform Aims to Democratize Business Valuations
BizEquity is disrupting the business valuation industry with a cloud-based platform that delivers comprehensive valuations in under five minutes for about $90. CEO Mike Carter explained the service is designed to make valuations accessible for millions of business owners who traditionally faced high costs and long wait times.
- Before the advent of online platforms, traditional business valuations were primarily an offline service, costing upwards of $8,000 and taking four to six weeks to complete. Legal valuations for companies with revenues up to $25 million can cost between $10,000 and $20,000. - Founder Michael M. Carter was inspired to start the company after realizing how few resources existed for business owners to understand their company's value. Prior to BizEquity, Carter was a managing director at The Musser Group, where he worked with legendary venture capitalist Warren V. "Pete" Musser, a founding investor in companies like Comcast and QVC. - The company was founded in 2010 and was acquired by American City Business Journals in August 2019. Over its lifetime as an independent entity, BizEquity raised a total of $5.1 million in funding over two rounds from investors including Frost Brooks and Brinker Capital. - BizEquity's platform functions by analyzing 143 data points to calculate a company's value. A significant part of its business model involves distributing its software through financial institutions and wealth advisors who provide the service to their business owner clients. - The company operates within a competitive landscape of online business valuation tools. Other platforms offering similar services include Equidam, Valutico, and Capitaliz. - BizEquity has partnered with and provided its service to major financial institutions, including KPMG, AXA, MassMutual, and UBS.
