If you're trying to grow your company, you're facing a lot of questions about your company's value. For many entrepreneurs, it's an almost impossible question.

How on earth can you predict how well you'll do? What sales levels will you attain? What market share? Margins? What's the value of your "brand"? For that matter, how the economy in general will be doing?

Why are they asking you these questions? You're not the Wizard of Oz.

Luckily, you don’t have to be psychic to answer them well. You just have to understand the standard techniques of valuation, and be able to argue their relative merits in your case. That’s how you give calm, well-reasoned, and impressive answers.

Because your investors understand these methods, they can cow you with their expert use of the lingo. If you can’t articulate your arguments for a high valuation, they certainly will be able to use one of the methods to value your company for peanuts.

Knowing valuation techniques give you an advantage in negotiations with potential investors. You may find that their estimates of your company's future sale price are at odds with best practice valuation techniques (that’s a nice way of saying they may be trying to take advantage of you!).

If you don’t understand this, of course you can hire a professional to do it for you, if you find someone you trust to be honest and competent. But who’s ultimately responsible for the valuation? You are. Outsourcing your valuation is like outsourcing your accounting – if there’s a mistake, it affects you, not the professional you paid to do it for you. You can’t outsource your responsibility for understanding the valuation of your business.

In this White Paper, you’ll learn:

• How investors calculate value
  
  
• How to protect yourself from inaccurate calculations
  
  
• How to speak with investors as an equal
  
  
• How to construct a value map
  
  
• Various valuation techniques (asset-based, income-statement, comparable marketplace, P/E, and more)
  
  

Want to know more?

Download the White Paper "Valuation Techniques" for just $14.95.

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