Prospectus’ team conducts valuations for companies worldwide spanning a plethora of industries and business models. Our team is often contracted to evaluate a company’s books and determine the selling or offering price. Our firm can recommend what you should offer investors in terms of equity ownership or even a sales price of the entire company.
Valuing one’s company is mostly based on mathematical equations (the more factual side) while other factors such as the future market conditions (speculation) or even the management team can weigh in on value. In actuality, regardless of what an owner believes or states what the company is worth, sophisticated investors will always find ways to lower the valuation. The product and service offerings of a company, the market and team and much more will determine how to value one’s company. Factors such as the following should be considered in your valuation, including, but not limited to:
- The company’s products and services
- Scalability of products and services
- General market overview and future analysis
- Historical performance, with financials
- Proforma and future looking projections
- Assets such as land, buildings, intellectual property
- Liabilities such as outstanding debt
- Management team
In addition to the above indicators, many will also look at similar companies in the space that have recently sold or are in the process of being sold, whether if the entire company is up for sale or just a part of it (like selling shares or units).
Startups vs. Established Companies
One of the harder hurdles to overcome for any startup, especially those in need of capital, is to value their company. A start-up company most likely doesn’t have historical financials. This essentially means the business owners cannot project mathematically what their future revenue will be as that is mostly determined by previous revenue and growth. It is important for startups to not get overzealous with their valuation but to have a realistic approach to the value of their business by putting themselves in the investors shoes.
Our team at Prospectus can help value your company and determine the best selling price to offer investors. We ensure that our clients are protected from investors attempting to take advantage of those seeking funding, while also ensuring that whatever value we put on the company or its shares that investors take seriously and do not balk at. Whether you are selling your business or a piece or it, our team can ensure you value your products and services at the right price.
Feel free to reach out to us for a free consultation.
- Prospectus Writing
- IPO Stock Exchange Listing
- Bond Offerings
- Feasibility Study
- Hedge Funds and Mutual Funds
- Offering Memorandum
- Private Placement Memorandum
- Offering Circular
- Explanatory Memorandum
- Information Memorandum
- Fund Setup Formation
- Securities Identifiers
- Registration and Filing
- Legal Work
- Escrow Services
- Business Plans