Business Valuation is the process of calculating the “Economic-worth” of the business that can be used to make strategic business decisions. It is a vital requirement in the events of fundraising, Merger, and Acquisition, sale of a business, strategic decision making or restructuring the business.
As quoted by Warren Buffet “Managers and investors alike must understand that accounting numbers are the beginning, not the end, of business valuation”. Starting from analyzing the current financial health of the business an estimated business valuation goes beyond justifying the industry trends, company metrics, and forecasted indicators.
StartupMinds helps you breakthrough various complexities of business valuation and arrive at the range of figures that are rational and relevant. Various challenges involved in the process of valuation are lack of data availability, inaccuracy in forecasting assumptions, inability to capture frequently changing norms or other regulatory standards.
StartupMinds has ample experience in the field of valuation and has consulted abundant Startups, SMEs and Blue-chip companies. The company predominantly specializes in calculating and negotiating its estimated valuation figure.
Valuation of the business can be calculated using different methods of Absolute valuation- Discounted Cash Flow, Venture Capital Methods or Relative Valuation- Trading Analysis, Transaction Analysis. One or combination of methods can be used for calculating the valuation which also depends upon the basis of the event for which valuation is calculated or strengths and weaknesses of the business to provide the correct range of valuations.
What We Do
What We Do
StartupMinds meets the requirement with utmost precision and accuracy. It employs a dedicated and knowledgeable team with each team member adding value in terms of industry, product and geopolitical awareness.
Calculation of business valuation requires a deep understanding of the company’s management, its financial structure, asset base or its growth prospects. Various approaches used in the valuation process include financial statement analysis, book value approach, comparable trading multiples, earning multipliers, discounted cash flow method.
Valuation modeling is used by startups as well as mature companies. While valuation for mature companies can be based upon EBITDA multiples or comparable trading multiples, the valuation of startups can be challenging. While the startups or other businesses are raising funds and growing the reason for valuation also keeps evolving. From justifying an innovative business idea at the initial stage to providing a clear roadmap of growth and sustainability at a later stage the valuation of the business keeps changing.
StartupMinds is well equipped with efficient human resources that can help their clients in any stage of development and lead them towards growth and prosperity.