Value (like beauty) is in the eye of the beholder – and this is never more apparent than when one is evaluating an emerging or established business.

When introducing your company to potential investors and partners, a significant portion of the conversation typically revolves around the value of the entity and how much it’s worth in an arm’s length transaction. Without the proper grounding, you stand at a distinct disadvantage when negotiations of this nature arise.

Here’s a quick checklist you can use to compute the value of your company:

  • Strength of the team (Total Score: 30%)
    • How much time are the founders committing to the business?
    • How many employees does the business have?
    • How many years of industry experience does the core team have?
    • What’s the business and managerial background of the core team?
    • Are there serial, successful entrepreneurs on the team?
    • What’s the average age of the founders?
  • Quality of the idea (Total Score: 20%)
    • Have you validated the demand for your product/service?
    • Has the feedback received by early adopters and industry experts been positive?
    • What’s the level of competition in the market?
    • Do you have a competitive advantage over other products/services?
    • What’s the geographical scope of the business?
    • What is the threat of international competition?
    • How loyal are your customers?
  • Quality of the product (Total Score: 15%)
    • At what stage is the product/service roll-out?
    • What type of intellectual property protection is applicable?
    • Is there any intellectual property protection in place?
  • Strategic relationships (Total Score: 15%)
    • Is there an advisory board and how many advisors are on the board?
    • How many current shareholders are there?
    • Do you have legal counselors?
    • How strong is your relationship with key strategic partners?
  • Operating stage (Total Score: 20%)
    • What stage of development is the company at?
    • Is the company currently profitable?

Business valuation is the process or set of procedures, used to ascertain the economic value of a business, a unit or an owner’s interest in a business. It is essentially the worth of your business in monetary terms. Do you have a number for this?

Do you want a helpful expert to value your company for you? You can search for ‘’business valuation’’ consultants on our platform.