Business valuation consists valuation of an entire business, a strategic business unit, a department or a particular store are all. Business valuation in India is a very important aspect in an entrepreneur’s journey since this monetary number values the time and effort they have put in to grow the business.
We believe that the valuation of a company is more of a collaborative effort between our experts and the founders of the company we are doing the exercise for. With the support of the founder, we understand the business model better, which in turn gives us more insight into the operational aspects of the business. This helps us in preparing a better financial model and give inputs to the founder to further better their business model so that it can be investable.
The valuation of a business holds a lot of value for an Entrepreneur since it resembles the effort and time put in by him. The effort, time and the continuity of the business hold value. A business can be valued not only by the above-mentioned parameters, but there are more aspects which impact the value of a company more than just the effort and time put in. A business which has higher market share and is disrupting the traditional methods of the industry will certainly command a higher valuation than the traditional businesses. This is one of the reasons why start-ups are being valued higher than traditional businesses in the industry they are disrupting.
Why are professional services required for Business Valuation of a Start-up?
Valuing a start-up is a tricky ball game altogether. It needs a thorough understanding of the business model, the scalability of the model, the disrupting nature of the start-up and the segment which will be disrupted. All this requires the services of a professional.
Why Choose AAPTCORP Global for the Business Valuation of a Start-up?
With our expertise and in collaboration with the founders, we can help the founders understand their business model better and give suggestions to improve both the scalability and the revenue model of the company. This exercise helps create a win-win situation for all concerned stakeholders since there is a clearly defined business model laid out and with the improved and realistic numbers, we can help entrepreneurs negotiate and defend their valuation against potential investors.
An established and running business may not be disruptive. It might be emerging, though, as market leaders in their operating segment. With the evolving of tech start-ups, the value of traditional businesses seems to be lacklustre when compared to that of the start-ups. However, with the help of experts and proper guidance, the valuation of a company can be increased so that no undervaluation takes place.