Do Your Own Business Valuation – Part 4: Quantifying Business Risks
The basic concept of business value is that the future benefits (return) of owning a company must be adjusted (discounted) for the risks associated with owning the company. The sales or earnings of a company are typically used to represent the benefits (return). Multiples and [...]
At the outset, let me state that business valuation is an art, not a science. Even though there are industry-standard calculations which are relied upon, you must have a firm grasp of the underlying valuation assumptions. Or else, the calculations may not reasonably reflect your business’ fair market value.
Capital raising success hinges on ability to [...]
Home equity loans are taken where the borrower uses the home as collateral. These loans may be useful for home repair, medical bills or even for education. Most home equity loans require good to excellent credit history. These come in two forms, closed end and open end.
Both of the above types are considered as [...]
Liberalization in economy in India saw the real estate companies gain importance. The increases in business opportunities have increased demands for commercial properties and residential space.
Real estate India is currently in a nascent stage with unlimited growth options. Though unorganized unlike its counterparts in developed countries, this sector is luring foreign investors in a [...]
One sector that has assumed growing importance owing to liberalization in economy in India is its real estate sector. The consequent increase in business opportunities has escalated demands for commercial and residential space. Real estate India is currently in a nascent stage with unlimited growth options. Though unorganized unlike its counterparts in developed countries, this [...]
A recent phone conversation drifted into the question of valuation for start-up and early-stage companies. My own opinions on the matter have been formed through work with many such companies and on behalf of many investors in them. The ‘traditional’ approach to allocating equity between investors and management breaks down regularly – with both sides [...]
What are your fields of expertise? What business process have you mastered? Have you developed a new and useful product? When you form a joint venture, you need to bring your strengths to the table and find a way to leverage those strengths with your joint venture partner to benefit both parties.
A joint venture can [...]
