Illustrations

Load illustrations from link file Some companies use their illustration system to produce a link file that contains all the policy values, just like the schedule we just entered, that can be loaded into the software. To load a link file, select “Load illustration from...

Comparison Tab

Comparison tab Straight capitalization The Straight Capitalization method takes the adjusted average annual earnings (net average annual earnings plus any excess owner salary) and divides it by the Capitalization Rate. This method emphasis the earnings from a risk...

Discounts Tab

Discounts tab This category doesn’t apply to the business, but to an owner’s portion of the business. If the business interest lacks marketability, in other words, it would be hard to sell the shares of the business to a typical investor at fair market value,...

Calculation Tab

Annual growth rate The annual growth rate represents the average annual earnings of the business as a percentage ofthe revenues, it’s used to reflect the growth rate for the immediate future. Capitalization rate Capitalization Rate reflects the risk of the...