12.2. Five Phases of Company Valuation
Company valuation calculates the fair value of the target company as well as supports value creation among investors so they can reach their economic goals in terms of expected IRR. The process of company valuation is realized through these phases.
- Business plan analysis
- Financial needs assessment
- Enterprise value analysis
- Price setting
- Exiting
It is important to accomplish the previously listed valuation steps in the right sequence. Before this can be completed, it is necessary to know and use specific techniques and methods to approach the items in the correct order. First, the venture capitalist must have focused goals that support the whole valuation process to execute appropriate investing ...
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