The day will come when you as a founder will have to sell your company to a private equity fund, strategic partner or merge with other players in the market. If you feel the time has come to sell your venture, familiarize yourself with some valuation methods to get an idea of your company valuation. There are different ways to estimate the value of a company but in this video I am sharing some commonly used methods. Depending on the buyers personal situation, motives and your positioning, other method might be applied.
Here are the methods I am discussing:
- Asset-based Method
- Earnings-based Method
- Discounted Cash-flow Valuation
Each of these methods has it's pro's and con's and therefore it would be good to apply multiple methods to get an idea of your company value. The true value is somewhere in between.
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