There are a range of methods for determining the value of a going concern.
Introducing the basics of valuing a business
This short video introduces the basics of valuing a business.
Note that the presenters talk about the EBITDA measure (Earnings Before Interest, Tax, Depreciation and Amortization). This is a measure of a company’s operating performance, and enables investors to compare different companies more easily than if they only looked at profitability, for example.
The fundamental challenge with valuing a start-up business is the absence of performance data.
Brainstorm ideas about how you could determine the value of a new start-up business by posting a WEnote below, for example:
- The value of a start-up can be determined by …
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