Abstract
By the end of this chapter, you should be able to:
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explain how new ventures and small businesses are valued
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use the various valuation methods
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appreciate the strengths and weaknesses of the valuation methods
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understand the criteria for selecting a venture valuation model
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Notes
- 1.
Post-money is pre-money plus the new investment (V 0 Post = V 0 Pre + I)
Pre-money is the value of the firm before money goes in (V 0 Pre = V 0 Post − I).
Bibliography
Smith, J. K., Smith, R. L., & Bliss, R. T. (2011). Entrepreneurial finance: Strategy, valuation, and deal structure. Stanford: Stanford University Press.
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Abor, J.Y. (2017). Valuation of New Ventures and Small Businesses. In: Entrepreneurial Finance for MSMEs. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-34021-0_13
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DOI: https://doi.org/10.1007/978-3-319-34021-0_13
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Publisher Name: Palgrave Macmillan, Cham
Print ISBN: 978-3-319-34020-3
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