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Private Company Valuation – Know Your Worth

WHAT IS IT?

Private company valuation is the set of procedures used to place a value on a company’s current net worth. There are various reasons why a company valuation can be required – for the sake of awareness, legal purposes, or to determine the right price for sale.

As important as the process is, you could, however, face the following problems when valuing private companies:

Therefore, it is essential that the valuation is performed by knowledgeable individuals or institutions that do not have a bias towards the outcome.

Valuation Methods
The following are some methods that experts use for valuing private companies.
Know your worth

Irrespective of the method you select to value your company, remember that if your business has experienced a downturn recently that has affected its financial performance, the value of the company may fall short of your expectations. In these uncertain times, not only will a professional be able to offer you an objective assessment of your business, but they will also be able to amalgamate multiple business valuation methods to get you the best and most holistic sense of what your business is worth.

At Affility Consulting, our experts take company valuations one step ahead and also offer guidance in terms of preparing teasers, projections, and investment models that can be useful in negotiations with investors.

 

 

Written by

Principal Business Consultant - Specialist Guest Writer