How To Value A Business
Written on Apr 25th, 2018
I recently was looking at a business plan for a new venture that came across my desk. The two individuals involved are trying to raise money for a bar in South America that they will manage. It’s one of those businesses that most people dream about – a foreign country with lots of sunshine, lots of friendly travellers, and evenings spent sipping beer on a patio. Sign me up! As part of their business plan, they needed to come up with a value for what this new business would likely be worth once it was off the ground. The reason you need to have a value is that when you are trying to solicit investments from people, they need to understand how much of the company they will own. So if a business is worth $500,000, and an investor puts in $100,000, it wouldn’t be unreasonable for them to own […]
