Prospectus LLC provides valuation services for businesses across the globe. We can conduct valuations for a wide range of business types in many different markets. For the most part, we are contracted to assess the books and financials of a company, and then determine their value (offering/selling price). Our team can wisely recommend how much equity you should offer prospective investors, and we can even help you determine the selling price of your whole company.
When it comes to putting a monetary value on a company, evaluators mostly use pure mathematics. However, there are other less tangible aspects that can have an affect on the value, such as potential future conditions of the market or the company’s current management. However, the value that investors attribute to a company will always be lower than the owner’s given value. There are many determinants of the value of a company. When processing a valuation, the following factors should be taken into consideration:
- The company’s products and services
- Scalability of products and services
- General market overview and future analysis
- Historical performance, with financials
- Proforma and future looking projections
- Assets such as land, buildings, intellectual property
- Liabilities such as outstanding debt
- Management team
Aside from evaluating the company itself, many potential investors will also look for recent sales of companies in the same market.
Startups vs. Established Companies
A startup seeking capital will find it very complicated to make an accurate valuation of their own business. This is because companies in the early stages probably do not have past financial records that can be utilized. As a result, the business will probably be unable to project what their future profit and revenue will be as a function of previous performance. It is vastly important for fledgling companies to be realistic with their valuations.
Prospectus LLC can help with your valuation and subsequently determine the best price that you should offer prospective investors. Our team will protect your business from investors trying to offer lowball prices. We will do a thorough valuation and give you a figure that is appropriate for your company and for investors. Whether you want to sell part or all of your company, we will make sure to do a comprehensive and accurate valuation.
Please contact us for a free consultation!
- Prospectus Writing
- IPO Stock Exchange Listing
- Bond Offerings
- Feasibility Study
- Hedge Funds and Mutual Funds
- Offering Memorandum
- Private Placement Memorandum
- Offering Circular
- Explanatory Memorandum
- Information Memorandum
- Fund Setup Formation
- Securities Identifiers
- Registration and Filing
- Legal Work
- Escrow Services
- Business Plans