BizEquity, Equifax Build Small Business Valuation Tool
BizEquity and Equifax (NYSE: EFX) are partnering to build a small business valuation tool. It’s designed to help financial professionals to prospect more effectively, and small business owners to better understand their business’ worth (i.e., valuation).
Under terms of the agreement, Equifax will license certain data assets to BizEquity. The information, containing financial and business details of some 80 million companies, will allow BizEquity to pre-value over 71 million private businesses, the companies claim.
The net result: BizEquity says the new valuation service will help provide financial professionals with:
- prospecting intelligence and lead engagement;
- key business contact details;
- innovative big data analytics;
- a reliable and viable technology platform; and
- the ability to build stronger client relationships.
The big questions: We don’t know when BizEquity will actually launch the tool. Nor do we know just how “accurate” the small business data will be. And as the old saying goes: Bad data in, bad data out.
What’s My MSP, VAR Business Worth?
Demand for valuation tools is skyrocketing. The reason: As baby boomers age out of the market, roughly 12 million U.S. businesses are expected to change ownership over the next 10 to 15 years, according to the California Association of Business Brokers.
Within the IT channel, VARs and MSPs are seeking simple valuation tools as well. Scores of IT services have already been acquired this year. However, HTG Peer Groups warns that many IT service providers are facing massive valuation gaps that will potentially delay or undermine company sales, ownership transitions and retirement plans.