The Business module is for clients with an ownership stake in a company — an S-corp they run, an LLC they co-own, a partnership share in a practice. It captures the business as a planning entity on top of its balance-sheet asset record, so you can model valuation, owner cash flow, and what a sale would actually net the client.
It's separate from the Business asset type on the balance sheet. The asset type gives you a line item with a dollar value. The Business module is where you figure out what that dollar value actually is and what happens at exit.
Where to find it
Go to Planning > Business inside any client. You'll land on the list of business records for that household. If the client has a Business asset on their balance sheet but no planning record, you'll see a button to link them.
Click into any business to see the detail page with four cards: Valuation, Concentration, Cash Flow, and Sale Proceeds.
Creating a business record
Two paths:
Link an existing asset. If you already added a Business on the balance sheet, click Link existing on the list page and pick the asset. Kerdora creates a planning record wired to that asset, and the asset's balance becomes driven by the planning record's valuation.
Create new. Click + Add business. Kerdora creates both the planning record and a matching balance-sheet asset in one step, pre-wired so valuation flows from planning to balance sheet.
Either way, the balance-sheet asset balance is now derived from the business planning record. You can break that link and freeze the balance later if you want.
What you enter
Inside the business editor you capture:
Name, entity type, industry — descriptive metadata.
Ownership percent — the client's share. Every dollar figure in the module multiplies by this to give the client's share.
Owner role — Operator (client runs it) or Passive (client owns but doesn't run).
Revenue and EBITDA — for the earnings-multiple valuation method.
Owner annual cash flow — what the business actually pays the client (salary + distributions) each year. Drives the Cash Flow card.
Business debt and other business assets — for the asset-based valuation method.
Exit type — Keep forever, Sell, Pass down, or Unknown. If Sell, you enter the target exit year.
Buy/sell status — whether there's a buy/sell agreement in place (N/A, None, Cross-purchase, Entity-redemption, Hybrid).
Valuation
The Valuation card shows the client's share of the business value today — plus a projected value at the target exit year if an exit is planned.
Pick one of four methods:
Multiple of EBITDA. Enter a multiple; Kerdora applies it to EBITDA (or revenue if you toggle the basis) to estimate enterprise value. For operator-owners, the math deducts a reasonable owner W-2 before applying the multiple (the "SDE walkback") so the valuation reflects what the business is worth to a third-party buyer.
Multiple of revenue. Same idea, applied to revenue instead of EBITDA.
Asset-based. Other business assets minus business debt. Good for holding companies and asset-heavy operators.
Manual. Type the valuation in directly.
The "your share, today" number is always valuation × ownership%.
Projecting to exit
If the client plans to sell, the card also shows the projected value at the exit year, compounded at a growth rate you set. Toggle between Today's dollars and Future dollars — today's dollars discount future value back using the inflation rate you've set on the client.
Concentration
The Concentration card compares the business's value to the client's total net worth. High concentration (a business worth more than, say, 40% of net worth) is a risk flag for clients nearing retirement — the Observations engine picks it up, too.
Cash Flow
A simple card showing owner annual cash flow and the monthly equivalent. Standalone for now — the V1 of the module doesn't automatically tie this to the client's income items, so if the client's Kerdora income already includes the business salary, don't double-count by entering it here again.
Sale Proceeds
If the exit type is Sell, this card estimates net take-home from a sale. It shows:
Gross sale price (client's share of valuation)
Minus selling costs (percentage you set, typically 5-10% for broker/advisor fees)
Minus taxes — applies the federal long-term capital-gains rate and the client's state tax rate to the gain over basis (which you enter)
Minus remaining business debt allocated to the client's share
Net sale proceeds — the dollar amount that hits the client's balance sheet on sale day
Toggle between today's dollars and future dollars (at the projected exit year) using the dollar toggle in the corner of the card.
Deleting a business
The detail page's Delete business button offers two choices:
Delete planning only. Keep the balance-sheet asset, freeze its current value, and remove the planning record. Use this when you want a line-item asset but don't want to model the business anymore.
Delete both. Remove the planning record and the balance-sheet asset together. Use this when the client sold the business or you're cleaning up a test record.
Tips
Owner role matters. If the client is Operator, the SDE walkback kicks in — valuation subtracts a market-rate owner salary before applying the multiple. For Passive owners, it doesn't. Getting this wrong inflates the estimate.
Keep ownership percent accurate. Every downstream number (valuation, cash flow, sale proceeds, concentration) multiplies by it. Small shifts (25% → 33%) move everything.
The module assumes one business per record. If the client has a holding company with multiple operating subs, create separate records if their valuations or exit plans differ. Otherwise one consolidated record is fine.