How to value a startup business? Methods to value start-up business. Why do you need to value a startup business though you are not selling it?

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