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Business Valuation from an investors perspective

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Presentation on theme: "Business Valuation from an investors perspective"— Presentation transcript:

1 Business Valuation from an investors perspective
Janet Melissa Chapoñán Casiano

2 Business Valuation from an investors perspective
Entrepreneurs

3 How did our investor arrive at this price?
Entrepreneurs How did our investor arrive at this price? Which is the amount of stock that the entrepreneur is going to have to give up or equity on the company that the entrepreneur's going to have to give up in exchange for the capital infusion.  One opportunity that they do get at the Capital Match Point is the opportunity to speak with our investors frequently. And what we have found is that, when evaluating companies for investment, our investors usually think about things like Investor

4 How attainable are the goals and milestones of the business plan?
Important to remember, a sophisticated investor is a sophisticated analyst, and if they see something in the financials that don't hang together with the business plan, or they see things that look unrealistic, they're going to adjust accordingly.

5 When will the company be prepared for exit or sale?
 It's important to keep in mind that the longer an investor has their capital invested in an entrepreneur's company, that's going to affect the return on investment that investor earns.

6 What will the market appetite be at the time of exit?
This again gets back to pretty serious implications on investor ROI*. (RoI - Return on Investment) How much does management have invested in the company? This speaks directly to the credibility of the business and the execution of the business plan that's set forth in front of them.

7 How is the investment being structured?
And this is a function of risk, and it involves combinations of equity and debt, and, of course, an investor will ask for less stock in exchange for less risk. If an entrepreneur has received an offer for investment, and they're trying to sort it all out and ask some questions, what I recommend is that they give us a call at the Capital Match Point. Because at the end of the day, we want to be sure that our clients are prepared with as much information as possible when they begin the negotiating process.


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