DIFFERENCES BETWEEN STARTUP VALUATION & STANDARD VALUATION PRACTICES

Posted on 14. May 201922. May 2022 by Valithea Advisory

Business valuation dramatically reduces investment uncertainty. It is still a science under development as markets change and more information becomes available. Since valuations are forward-looking, the practice still involves a high degree of judgement. Startup valuation is based on leading practices rather than set standards. Most early-stage valuation decisions take place during negotiations, nevertheless they Read more about DIFFERENCES BETWEEN STARTUP VALUATION & STANDARD VALUATION PRACTICES[…]

BUSINESS VALUATION: WHAT ARE THE OPTIONS?

Posted on 28. January 201922. May 2022 by Valithea Advisory

When deciding what type of company valuation you need, there are few options available. It usually depends on your specific situation, company size, information available (specifically when the valuation is ordered by an investor) and type of transactions, as well as the expected audience and negotiations. The purpose or transactions for which you may want a Read more about BUSINESS VALUATION: WHAT ARE THE OPTIONS?[…]

YOUR VALUATION IS NOT FIXED IN STONE

Posted on 11. August 201822. May 2022 by Valithea Advisory

As a valuation professional, explaining what value is and how you get to it, is sometimes a challenge. There are so many transactions in the market, especially at the early stages, that concepts have to be simplified to be able to negotiate quickly and effectively. The valuation then becomes a value that you agree on Read more about YOUR VALUATION IS NOT FIXED IN STONE[…]

THE INFORMATION BASE IN VALUATION

Posted on 21. February 201622. May 2022 by Valithea Advisory

Before starting with your valuation you should establish a good information base, whether you’re doing it for your company internally or for an external client, which will save you time and prevent mistakes. This means going through a checklist on the assignment’s characteristics and collecting all key information. If you’re carrying out a valuation as an external Read more about THE INFORMATION BASE IN VALUATION[…]

DECODING THE VALUATION PROCESS

Posted on 29. October 201522. May 2022 by Valithea Advisory

In a valuation, nothing can be viewed in isolation, you always need to consider the overall picture. However, the big picture is also made up of many sources, inputs, logical decisions and methods, without which the overall picture would no longer make sense. Because the value of a company is not to be viewed in isolation, Read more about DECODING THE VALUATION PROCESS[…]

AUSTRIAN, GERMAN AND ITALIAN VALUATION STANDARDS AT A GLANCE

Posted on 30. August 201522. May 2022 by Valithea Advisory

Until recently few countries had released their own valuation standards. With the market demanding stronger valuation standards, many countries have started working on their own guidelines. The International Valuation Standards Council, for example, seeks to unify these standards. However, the local standards tend to go more into the technical valuation details. The OIV (Organismi Italiano di Read more about AUSTRIAN, GERMAN AND ITALIAN VALUATION STANDARDS AT A GLANCE[…]

UNDERSTANDING THE BUSINESS VALUE OF SOFTWARE

Posted on 5. June 201520. September 2022 by Valithea Advisory

1. CHARACTERISTICS Software is commonly divided into system and application software. For valuation purposes it is useful to distinguish the following characteristics in order to assess its marketability and income stream₁: Valuing software as an asset requires a different process to valuing a company: it involves isolating the cash flows originating from the asset with Read more about UNDERSTANDING THE BUSINESS VALUE OF SOFTWARE[…]

WHO CAN VALUE YOUR COMPANY?

Posted on 30. May 201522. May 2022 by Valithea Advisory

Business valuation is a constantly evolving science, shaped by empirical research, opinions of leading experts and the judgement of the valuer. It is impossible to pinpoint the exact intrinsic value of a company, so all methods are aimed at detecting and quantifying as many factors as possible that can have an influence on the Read more about WHO CAN VALUE YOUR COMPANY?[…]