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Business Valuation Companies in India | Business valuation method consultant

Business growth prospects<br>Regardless of the industry, your firm operates in, business value depends largely on the company’s earnings growth outlook. This valuation factor is highest for the companies with an outstanding earnings growth track record.<br>Ease of access to business financing<br>Financial capital is the lifeblood of successful businesses. Ability to attract and retain required financial resources is key to business success – and directly impacts what the company is worth.<br>Competitive environment<br>Businesses that compete in the market segment dominated by a few large, well-funded competitors face tough times ahead. Your company is likely to be more valuable if it does most of its business in highly fragmented market sectors with many smaller competitors.<br>Location<br>Location can make or break a business. Great customer access, well-designed premises that invite both new and repeat business tend to go with higher business values.<br>Customer concentration<br>Most successful companies try to reduce dependence on a few large customers. Should any one customer be lost, the effect on business earnings is minimal. The more loyal customers a company has the higher its value.<br>

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Business Valuation Companies in India | Business valuation method consultant

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  1. TOP 5 TECHNIQUES FOR STARTUPS VALUATION IN INDIA Figure 1

  2. There is a famous saying, “WHENEVER THERE IS A TRANSACTION, THERE IS VALUATION”. IT IS TRUE. BUT THE REVERSE IS NOT TRUE- “WHENEVER THERE IS VALUATION, THERE MUST HAVE BEEN TRANSACTION”. Many times valuation is isolated from a transaction. A start-up has developed an idea. It has validated the idea. Business promoters would like to the value of their startups now and after, say, 1-3-5 years. Why so? They need it to confirm that:- Whether idea has been successful Whether business model and business plan have been successful. The growth rate of the business Employees and other stakeholders’ satisfaction Improvement in profitability Strategic position in marketplace etc. Start-up valuation is different from valuing any running business due to many reasons. Start-ups may not have:- Business experience Operational skill set Brand name for their products/services Strong R&D base Dedicated execution team Experience of affording sudden economic shocks A required amount of fund etc. However, the best part of is that startup owners are not biased and secondly, they can be guided and molded on the above issues easily. Let us discuss some techniques for the startup valuation: 1.Asset approach: New businesses normally have few assets. Under this approach, the market value of all the assets is assigned. Assets include current assets also. Apart from that, a value of intangibles must also be assigned. The combined value will be the value of the business. 2.All principals and employees add value. Assigning a value to all paid professionals based on their skills, Knowledge, experience and their contribution to the organization may be a fair idea. 3.Early customers and contracts in progress add value to the business. Existing customer relationship and contracts should be monetized. www.venture-care.com Ask@venture-care.com 020-65 3636 33

  3. 4.Use of discounted cash flow is also a good idea. A reasonable number of future years for which sales seem to be visible can be forecasted. The cash profit should be capitalized at a discount rate. While estimating the discount rate care should be taken to factor the risk and uncertainty and if possible a bit conservative discount rate should be chosen. 5. Earnings multiple approaches- earnings multiple is selected and the average earnings should be multiplied to reach valuation figure. This approach is usually applied to a more mature start-up. To conclude, whatever may be the techniques used for start-up valuation, care should be taken that: It is unbiased It is relevant It considers all the aspects of valuation It is explanatory It serves the purpose of various stakeholders It should help in making decisions Venture Care can help you with the Business Valuation Services, Click here to know about our Business Valuation Services in India. If you have any query please comment in the comment box below or call us on 020 65363633 www.venture-care.com Ask@venture-care.com 020-65 3636 33

  4. Contact Us: Branch Office (Netherlands) Venture Care Jonker Fransstraat 46, 3031 AV Rotterdam, (NL) Phone:+31 614 575 275 Head Office (India) Venture Care Sr.No-29, Ajikyatara, kalaniketan, Dhankawadi, Near Rajshri Shahu Bank, Pune, Maharashtra 411043 (IN) Phone: (020)-65 3636 33 www.venture-care.com Ask@venture-care.com 020-65 3636 33

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