28 Business valuation
‘A year later, $19 billion for WhatsApp doesn’t sound so crazy.’
Josh Constine, technology journalist and editor-at-large for TechCrunch
In a nutshell
For a business the ultimate measure of success is its valuation, which is the amount a willing buyer is prepared to pay.
The stock market provides a platform for buyers and sellers to interact and set the price of shares. Public companies therefore have a real-time indication of their market value. For private businesses, however, no such market exists.
A number of methodologies exist to value a business, although in practice valuing a business is an art and is down to a number of factors, including negotiation. The aim of the various valuation techniques is to provide ...