Valuating a Business Examples
- Over the past 3 to 4 years, venture capitalists have been very conservative with their investments. This is because they have had so many problems within their current portfolios that they cannot afford to take the same risks on new companies.
- The method of valuation will also depend on your industry. In a traditional, or smokestack, industry there are typically many comparative examples. Here you can work from the earnings before interest, tax and depreciation (EBITDA) of similar companies and apply a ratio to your own business.
- New products and technologies pose a valuation problem due to the lack of comparative companies. It is much more difficult to valuate these businesses.
- The method of valuation will also depend on your industry. In a traditional, or smokestack, industry there are typically many comparative examples. Here you can work from the earnings before interest, tax and depreciation (EBITDA) of similar companies and apply a ratio to your own business.
- New products and technologies pose a valuation problem due to the lack of comparative companies. It is much more difficult to valuate these businesses.
 |
For more information, visit www.EvanCarmichael.com. |
0 Comments:
Post a Comment
<< Home