Startup Business Valuation service
Our startup business valuation service helps entrepreneurs understand what business stake to offer to potential investors in exchange for the required startup funding. This service can also be useful for early stage investors evaluating targeted businesses.
To determine a startup business value, our business valuers use various business valuation approaches and methods relevant for startups. These methods may include:
Discounted Cash Flow (DCF)
Discounted Cash Flow (DCF) method is an income-based valuation method which estimates the business value based on the projected cash flows. The business value is determined by discounting the future cash flows for time and risk using an appropriate discount rate. As the DCF method is highly reliant on projections and assumptions, its application can result in an inaccurate value estimate. This is why it is a good idea to test the outcome of this method against other valuation methods.
Cost to Create
Cost to Create method is an asset-based method which estimates the business value based on how much it would cost to build a similar business (a business producing similar economic benefits) from scratch.
Rule of Thumb
Rule of Thumb methods focus on non-financial aspects of a startup to estimate the business value. In startup valuations, assessing non-financial aspects, such as the startup potential, risk profile and progress of the commercialization activities, is particularly important. This is because financial data traditionally used for valuing established businesses is either non-existent for startups – no historical financials accumulated yet, or unverifiable – financial projections startups produce are prone to over- and under-estimations and bias.
Benefits of a professional Startup Business Valuation:
For startup entrepreneurs
- Indicates what business stake is necessary to sell to obtain the required startup funding
- Helps to negotiate and secure the required startup funding
For early stage investors
- Indicates how much equity in the target startup to ask for in return for the startup funding
- Helps to determine the targeted startup value
How much does our Startup Business Valuation service cost?
Our full-scope Startup Business Valuation service costs from $2,685, including GST. Our Calculation Engagement valuation service costs from $945, including GST.
Please contact us to obtain a quote.
What is included in our Startup Business Valuation reports?
Our standard Startup Business Valuation reports cover the following content:
- Executive summary
- Description, nature and scope of the business valuation assignment
- Industry overview
- Business/concept overview
- Financial Plan with projections for five years, including: Summary of start-up costs & funding requirements, Sales and Cash Flow projections by month, and annual Profit and Loss account projections
- Valuation context
- Valuation assessment
- Conclusion of value
This is how our Startup Business Valuation service is delivered:
- Call us on 02 4295 0079, email us at email@example.com or Request a Call Back
- Fill in our Startup Business Valuation questionnaire (we provide it after the initial communication)
- We will then contact you for more information, if required, advise the available dates to start on your Startup Business Valuation service, and send you the engagement letter and the invoice
- We will take from seven business days to prepare the Startup Business Valuation draft after the required additional information is provided and the full payment is received
- We will send you a draft business valuation report for review and comments
- After your comments are provided, we take from two business days to finalize your Startup Business Valuation report