The Basics of Startup Valuation

When we value a company, we value its equity (the Market Value of Equity) to determine the price paid for a transaction (acquisition, financing or other) where the investor receives ownership, which is an equity stake. The valuation can take place also for information purposes for debt financing, but it is mostly relevant for equity Read more about The Basics of Startup Valuation[…]

BUSINESS VALUATION: WHAT ARE MY OPTIONS?

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 MY OPTIONS?[…]

YOUR VALUATION IS NOT FIXED IN STONE

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[…]

Strategy planning for early-stage startups: How to reduce risks

Your ideal financing strategy is closely connected to your milestones. This is an example of milestones for a startup, this does not represent how funding rounds take place in all situations. Funding depends on a variety of factors. It‘s also possible to have multiple smaller seed rounds, as it‘s happening now in the market, and Read more about Strategy planning for early-stage startups: How to reduce risks[…]

Fundraising

How to start planning your fundraising campaign

There are many potentially great entrepreneurs with valid ideas, but often with little knowledge as to how to take the idea further with the limited resources they have available. Luckily there are now a variety of ways to fund businesses. All these options may be confusing at first. However, depending on the type of business Read more about How to start planning your fundraising campaign[…]

DAMODARAN ON NARRATIVE AND NUMBERS IN VALUATION

Aswath Damodaran’s webinar on “Narrative and Numbers: A Guide to Disciplined Story Telling and Imaginative Number Crunching” on Sageworks provided some very interesting insights into different approaches to valuation. Damodaran distinguishes between those people who are more comfortable with number crunching, and the storytellers. The ‘Numbers’ people tend to think that valuation is all about Read more about DAMODARAN ON NARRATIVE AND NUMBERS IN VALUATION[…]

DECODING THE VALUATION PROCESS

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

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[…]

WHO CAN VALUE YOUR COMPANY?

  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?[…]