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Valuation

Drivers of Valuation

In order of priority, the valuation will tend to be higher when all the following criteria are met:
Public markets, frothiness, or excessive capital supply can elevate valuations across the board.
The opportunity serves an attractive market with higher growth potential.
The opportunity has an established competitive position with protectable interests or advantages, like IP, market share, or leadership of an area.
A strong team that executes like a machine.
The opportunity demonstrates:
capital efficiency (needs lower amounts of capital to achieve financial independence),
revenues,
gross margins.
Exit potential in a target time frame and there is a universe of strategic buyers that is large, accessible, and seeks growth opportunities by acquisition.
Competitive markets for acquisition.

Example in the Wild.


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ACEF_-_Valuing_Pre-revenue_Companies.pdf
ACEF_-_Valuing_Pre-revenue_Companies.pdf
1.5 MB

Resources on Valuation




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