What is your startup worth?Seamless valuation services from Starters' CFO
- Valuation for regulatory purposes
- Valuation for investment pitches
- Clear & detailed valuation reports for negotiations
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Business Valuation Services
"Yesterday" was the right time to have an independent business valuation for your company by an independent business valuer. And tomorrow will be late.
The need for a business valuation arises for several reasons: incoming investors, financial strategy, business planning, business sale, founder exit, public offering, or net worth certification.
Fund Raise
Raising money is a cumbersome multi-stage process while establishing a valuation is one of the most important steps along the way. Valuation matters to entrepreneurs as it determines the dilution in the company in exchange for fund raise.
Sale of the business
As an entrepreneur, if you are considering selling your venture to a third party, a valuation that is prepared before the beginning of the negotiation will put you in a position of power. When you have a good idea of the value of a business, you can avoid wasting time looking at deals that do not make financial sense.
Mergers, Acquisition & Amalgamation
Having a buy-sell agreement in place between multiple owners ensures a smooth transition of a business in events such as death or disputes among the owners. Entrepreneur needs to understand the value of the business to determine the dilution of equity shares.
ESOP plans
If the company is considering establishing an ESOP, a feasibility study is needed and a key part of that study is the valuation of the business. While publicly-traded companies can use their market values for the ESOP, privately-held corporations need an appraisal to know how much they can deduct for the contribution of shares to the plan.
Regulatory purposes
Regulatory Valuations are required under Companies Act, Income Tax Act, FEMA, SEBI Regulations, Insolvency & Bankruptcy Code, IND-AS (Financial Reporting). Starters' CFO helps companies to navigate this environment of changing laws and regulations by offering skilled expertise for forming strategy and defending valuation positions.
Decision Making
An owner may want a business appraisal to help decide the near- and long-term strategies. While the investment in an appraisal is meaningful and not undertaken lightly, an owner at an inflection point in the business or his/her personal life may need the information to decide whether to sell, expand, gift, strategically plan or go in another direction.
Valuation Services
Valuation for regulatory purposes
Regulatory Valuations are required under Companies Act, Income Tax Act, FEMA, SEBI Regulations, Insolvency & Bankruptcy Code, IND-AS (Financial Reporting).
Valuation for investment pitching
How much should an investor pay for an interest in your company? It depends on what the company is worth.
Valuation Methods
(click to learn more)Berkus Method
This is an early-stage valuation method that was explicitly created to find a starting point without relying upon the founder's financial forecasts.
Venture Capital Method
The most common valuation method by Bill Sahlman, without the disadvantages of DCF method or comparable analysis method.
Risk Factor Summation
RFS is a rough pre-money valuation method for early stage startups. The RFS-method uses a base-value of a comparable startup for the valuation of your company.
Cost to Duplicate
This method involves taking into account all costs and expenses associated with the startup and the development of its product, including the purchase of its physical assets.
Scorecard Valuation
This method is used for comparing target companies to similar startups, such as business sector, stage of development and geographic location.
Book Value Method
This method is usually used as a method of cross-testing the more common technique of applying multiples to EBITDA, cash flow, or net earnings.
DCF Method
DCF is a valuation method used to estimate the value of an investment based on its expected future cash flows
Comparable Method
This method looks at ratios of similar public companies and uses them to derive the value of another business.
Stage Method
This method is often used by angel investors and venture capital firms to quickly come up with a rough-and-ready range of company value.
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Frequently Asked Questions
In simple terms, startup valuation is the process of quantifying the worth of a company, aka its valuation. During the seed funding round, an investor pours in funds in a startup in exchange for a part of the equity in the company.
This is why valuation is important for entrepreneurs as it helps in determining the equity which they have to give to a seed investor in exchange of funds.
Valuation matters to every startup because it helps in deciding the amount of equity an entrepreneur has to give to an investor in exchange for requisite funds.
This implies that if a company has a higher valuation, it has to give a lesser amount of equity or shares to an investor in exchange for seed investment. Not only for entrepreneurs, but startup valuation is also vital from investors’ point of view because it helps them gauge the amount of return they will receive on their invested amount.
Starter’s CFO has a vast experience in this field and we will provide you with the best Startup Business Valuation Services and tools irrespective of the valuation report requested by you.
Moreover, based on our client’s unique needs we offer different types of valuation reports ranging from, a comprehensive valuation report to an opinion letter. We take pride in the fact that we charge reasonable fees and has made many trusted and happy clients over the years of our functioning.
If your startup is just an idea, then it might worth almost nothing.
People have ideas all the time and unless you have a clear plan then you can’t put a value on the idea itself. Many great ideas fail because of poor execution.
If you have prepared the right business plan, a catchy pith deck, and your financial forecasts, then your startup will have more of a fixed value than an idea.
However, debating the value in this case is very difficult because you don’t have a product nor do you have any income generated.
At this stage the valuation will depend on the attractiveness of the idea, how good the business plan, monetization strategy is written, background of founders and their ability to execute the plan they have put, and the speculated risks.
Starters' CFO competitive pricing saves you money every step of the way. We continiously strive to offer quality services that beat the competition by huge margins, while keeping our prices affordable.
No payments are required before you start speaking to us! Consult with us for free, and have all your questions answered before you make any commitments.
Our teams are always available on dedicated Whatsapp groups throughout your purchase and consultancy experience.
- Get Startup Valuation Certificate
- Work with a Registered Valuer
If you are ready to get started, you can make an advance payment, and our team will reach out within 6 businsess hours to get started with you.
- Get Startup Valuation Certificate
- Work with a Registered Valuer
- Issue of shares (private placement of shares)
- Issue of shares to investors
- Complete ESOP implementation
If you are ready to get started, you can make an advance payment, and our team will reach out within 6 businsess hours to get started with you.