Know Everthing About Startup Valuation Services
Just like any other business, valuation is imperative for any startup. It gets more crucial when startups are seeking seed funding and need to establish the real market value of their businesses. At Credence Corporate Solutions, we comprehend the valuation or the process of ascertaining the fair market value of a business is a specialized function. Thus, we offer high-quality business valuation services through our team of expert finance and business professionals.
What is the purpose of a business valuation?
- To sell the business or part of the operations
- To negotiate and gain the necessary investment
- To assess the value of shares
- Help the investors to estimate the startups
- In matters of bankruptcies, mergers, and acquisitions, joint venture partnerships
Startup valuation methods we use
There are different methods that are important to calculate the valuation of new business. Some of them are quite simple, but most of them are based on different qualitative variables and statistical analyses. It is important for the entrepreneur to understand the most accurate valuation method and then calculate the worth accordingly.
- Cost-to Duplicate Method: In this method, all the costs required for the startup are considered comprising of the costs of all products and assets of the company.
- Valuation by Stage Method: In this method, the value is determined based on calculating the popularity of a similar product in the market. It is a straight and concise method.
- Venture Capital Method: In this method, the amount of return to the investor is calculated. It involves pre-money valuation and is ideal for those ventures trying to raise funds.
- Discounted Cash Flow (DFC) Method: This method involves the calculation of return rate through projecting the profit, loss, asset value, and securities of a company.
- The Book Value Method: This method includes determining the valuation of the startup by calculating the company’s assets and doesn’t involve any calculation of the profits.
- Risk Factor Summation Method: The method includes 12 factors to determine the valuation comprising management, sales, popularity risk, legal risk, etc.
- Comparison Method: In this method, your startup is compared with another similar startup value and prepares an estimated startup company valuation.
- Berkus Method: This method includes taking into consideration a few factors like the quality of the product, services provided by the venture, popularity of a similar product in the market, etc.
Why Choose Credence Corporate Solutions for startup company valuation?
Credence Corporate Solutions offers a myriad of services for business valuation. We have a team of experts with a proven track record for serving our clients with accurate and detailed value insights. Here are some reasons that make us one of the best firms for your startup valuation:
- We use the best startup valuation methods
- We are a team of experienced and well-versed professionals
- We maintain the highest accuracy levels
- Startup valuation for industry verticals
- Reputed clients across India
Following are the major business valuation services:
We at Credence Corporate Solutions, are experts in start-up valuation. We have a dedicated team of registered valuers and chartered accountants to help you find the true value of your company before going to the investor business valuation services. We consider the required positive as well as negative factors that affect the value of your venture. The positive factors comprise reputation, revenue, distribution channels, booming nature of the industry, etc. and the negative factors comprise competition, low margins, industry challenges, etc.
- Fundraising: Raising money can be a complicated multi-stage process while establishing a valuation. Valuation matters to the companies as it determines the dilution in the company in exchange for fundraising.
- Audit Support: Professionals in the business valuation industry boost the auditing of models, effectual platforms pricing, fair value assessments, etc.
- ESOP and Sweat Equity Valuation: Increase in Equity Linked Compensation Structures has led to the emergence of Employee Stock Ownership Plans (ESOPs) under which the stocks are granted to the employees and the Options are valued to find the Intrinsic Value.
- Mergers, Acquisition, and Amalgamation: It is necessary for a venture with multiple owners to have a buy-sell agreement in place. This agreement is beneficial in events such as death or dispute among the owners to determine the dilution of equity shares.
- Financial Valuation: The present value, fair value, or an informed estimate of the company is determined by what a buyer is willing to pay to a seller. It can be done using different kinds of techniques.
- Regulatory Valuations: Fresh issues of shares, transfer of shares, business combinations, etc. need different regulatory valuations from the Reserve Bank of India, Income Tax Law, Companies Act, SEBI Laws, etc.
