StatTrading
The concept of StatTrading is that creators and users of financial statements both demand and supply statistics. By networking creators and users via an anonymous exchange, the supply of statistics becomes one with the demand for statistics.
By licensing StatTrader to CPAs for use by their clients, clients will get an additional CPA service in the form of comprehensive and relevant benchmarking statistics (See Benefit to your firm). And, by inviting and or enrolling their client’s bankers and investors into the service, CPAs can control the distribution of their client’s confidential information while also collecting debt capacity, debt structure and valuation statistics, which is entered by bankers and investors in exchange for statistical averages from these entries (i.e., StatTrading).
Valuation Stats
Members are encouraged to submit valuation and debt capacity multiples of both sales and EBITDA. Commercial members can invite their bankers and investors to access their suite for the purpose of evaluating the company’s investment or loan potential. Valuation statistics are classified as:
- TRX – multiples are based upon an actual closed transaction
- BIDS – are non TRX multiples estimated by private equity and investment companies
- ASKS – are non TRX multiples estimated by companies, brokers and bankers
- VAL – are non TRX multiples estimated by CPAs, appraisers and others NEC
All StatTrader Members’ confidential data is shown to them confidentially under a revalued balance sheet using their chosen multiple. This revalued balance sheet is then used to compute a variety of statistics which are then used to create network averages.