From my extensive experience, one must make an analysis based on a few key elements which seem to be missing from BKMP
One of the most effective ways to simplify the evaluation process and better justify potential is by using Return on Investment (ROI) calculations, which help provide financial relevance.
Note: A true business evaluation system includes:
Trend analysis
Historical and forecast ratio analysis
Re-casting of financials to reflect adjustments for non-recurring expenses
Objective estimated five year forecasts based on historical data and qualitative information
Calculation of historical and projected Operating Free Cash Flow
Determination of company’s sustainable growth rate
Analysis of risk factors, including those associated with the level of diversification
Calculation of company’s weighted average cost of capital
Estimates of value utilizing a market comparable approach, a discounted cash flow approach, and a capitalized earnings approach.
And one very important element missing is a Revenue Stream