10 The Financial Times Guide to Corporate Valuation
In this chapter we will describe the following valuation scenarios:
Raising capital for growth
Creating an incentive programme to keep and attract employees
Executing a merger, acquisition or divestiture
Conducting an IPO.
Raising capital for growth
Back in early 1994, two years into the existence of Mobitronics, the founders
realized that their original finances would not carry the company through
the product development, marketing and recruitment required to bring the
venture up to speed. As is usual, a lack of capital prevented the company
from growing faster and the founders decided to attempt to acquire financ-
ing from external investors in order to carry out the expansion.
They