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MY START-UP
BUSINESS
HOW TO VALUE
Thursday, 4 July 13
Value A Start-up Business
No Goodwill
No Income
Pattern
Only Assets,
Ideas and
Market Assessment
Generally it is said that valuing a start-
up business is more art than science.
It looks to the future more than any other
valuation method
Thursday, 4 July 13
How Do You Value A
Start-up Business
•Market forces of the industry & sector in which it plays,
•Balance between demand and supply of money,
•The size of recent exits or sales
•Willingness of investor to pay a premium to get into a deal
•Desperation of the entrepreneur looking for money
•Assets of the business
•Looking into the Future
Thursday, 4 July 13
Methods To Value A
Start-up Business
A cost approach attempts to measure
the net value of the business today by
calculating how much it could cost for
a new effort to replace key assets - it is
one of the best way to value a startup
business but will probably lead to a
low valuation. Also called the “cost to
create” approach
Thursday, 4 July 13
Methods To Value A
Start-up Business
Since there is often very little or no
income, a valuer will use the
Discounted Cash Flow method to
forecast and value future cash
flows.
Thursday, 4 July 13
Methods To Value A
Start-up Business
Another popular method to
establish the value of any startup
business is to search for similar
companies that have recently
received funding or been sold.
This is called the market approach.
Thursday, 4 July 13
Why Do I need To Value A Start-up
Business When I Am Not Selling It?
Valuing a startup business
when you are running it
helps you to know the
strengths and weaknesses
of your business and can
help you in maximising
your profit and value.
Thursday, 4 July 13
Why do I need to value a Start-up
Business when I am not selling it?
You never know when you
need extra debt or equity
finance. To sell equity in your
business you need to know the
total value of it.
Thursday, 4 July 13
Why do I need to value a Start-up
Business when I am not selling it
If you have an exit strategy
and a target price, you know
how far short of that price you
are if you know the current
value.
Thursday, 4 July 13
For Advice on your Business
Valuation
BCI Business Brokers
Tony Arena (Managing Director)
3/1 Alexander Street, Crows Nest, NSW, 2065
Phone: +61 2 9439 3399
Mobile: +61 411888148
Email: tarena@bc.com.au
www.bc.com.au
Thursday, 4 July 13
Maximise Business Value
For help in maximising your business
value take a look at our product here
www.bc.com.au/maximise.html
Thursday, 4 July 13
For A Free Consultation On The
Value Of Your Business
Please visit our website
www.valueabusiness.com.au
Thursday, 4 July 13

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Start-up Business

  • 1. MY START-UP BUSINESS HOW TO VALUE Thursday, 4 July 13
  • 2. Value A Start-up Business No Goodwill No Income Pattern Only Assets, Ideas and Market Assessment Generally it is said that valuing a start- up business is more art than science. It looks to the future more than any other valuation method Thursday, 4 July 13
  • 3. How Do You Value A Start-up Business •Market forces of the industry & sector in which it plays, •Balance between demand and supply of money, •The size of recent exits or sales •Willingness of investor to pay a premium to get into a deal •Desperation of the entrepreneur looking for money •Assets of the business •Looking into the Future Thursday, 4 July 13
  • 4. Methods To Value A Start-up Business A cost approach attempts to measure the net value of the business today by calculating how much it could cost for a new effort to replace key assets - it is one of the best way to value a startup business but will probably lead to a low valuation. Also called the “cost to create” approach Thursday, 4 July 13
  • 5. Methods To Value A Start-up Business Since there is often very little or no income, a valuer will use the Discounted Cash Flow method to forecast and value future cash flows. Thursday, 4 July 13
  • 6. Methods To Value A Start-up Business Another popular method to establish the value of any startup business is to search for similar companies that have recently received funding or been sold. This is called the market approach. Thursday, 4 July 13
  • 7. Why Do I need To Value A Start-up Business When I Am Not Selling It? Valuing a startup business when you are running it helps you to know the strengths and weaknesses of your business and can help you in maximising your profit and value. Thursday, 4 July 13
  • 8. Why do I need to value a Start-up Business when I am not selling it? You never know when you need extra debt or equity finance. To sell equity in your business you need to know the total value of it. Thursday, 4 July 13
  • 9. Why do I need to value a Start-up Business when I am not selling it If you have an exit strategy and a target price, you know how far short of that price you are if you know the current value. Thursday, 4 July 13
  • 10. For Advice on your Business Valuation BCI Business Brokers Tony Arena (Managing Director) 3/1 Alexander Street, Crows Nest, NSW, 2065 Phone: +61 2 9439 3399 Mobile: +61 411888148 Email: tarena@bc.com.au www.bc.com.au Thursday, 4 July 13
  • 11. Maximise Business Value For help in maximising your business value take a look at our product here www.bc.com.au/maximise.html Thursday, 4 July 13
  • 12. For A Free Consultation On The Value Of Your Business Please visit our website www.valueabusiness.com.au Thursday, 4 July 13