{"id":276,"date":"2020-07-05T23:12:44","date_gmt":"2020-07-05T22:12:44","guid":{"rendered":"https:\/\/kleosafrica.com\/blog\/?p=276"},"modified":"2023-11-10T04:57:27","modified_gmt":"2023-11-10T03:57:27","slug":"a-quick-checklist-for-estimating-the-value-of-your-company","status":"publish","type":"post","link":"https:\/\/kleosafrica.com\/blog\/2020\/07\/05\/a-quick-checklist-for-estimating-the-value-of-your-company\/","title":{"rendered":"A Quick Checklist for Estimating the Value of Your Company"},"content":{"rendered":"\n<p>Value (like beauty) is in the eye of the beholder &#8211; and this is never more apparent than when one is evaluating an emerging or established business.<\/p>\n\n\n\n<p>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&#8217;s worth in an arm&#8217;s length transaction. Without the proper grounding, you stand at a distinct disadvantage when negotiations of this nature arise.<\/p>\n\n\n\n<p>Here\u2019s a quick checklist you can use to compute the value of your company:<\/p>\n\n\n\n<ul><li><strong>Strength of the team (Total Score: 30%)<\/strong><ul><li>How much time are the founders committing to the business?<\/li><\/ul><ul><li>How many employees does the business have?<\/li><\/ul><ul><li>How many years of industry experience does the core team have?<\/li><\/ul><ul><li>What\u2019s the business and managerial background of the core team?<\/li><\/ul><ul><li>Are there serial, successful entrepreneurs on the team?<\/li><\/ul><ul><li>What\u2019s the average age of the founders?<\/li><\/ul><\/li><li><strong>Quality of the idea (Total Score: 20%)<\/strong><ul><li>Have you validated the demand for your product\/service?<\/li><\/ul><ul><li>Has the feedback received by early adopters and industry experts been positive?<\/li><\/ul><ul><li>What\u2019s the level of competition in the market?<\/li><\/ul><ul><li>Do you have a competitive advantage over other products\/services?<\/li><\/ul><ul><li>What\u2019s the geographical scope of the business?<\/li><\/ul><ul><li>What is the threat of international competition?<\/li><\/ul><ul><li>How loyal are your customers?<\/li><\/ul><\/li><li><strong>Quality of the product (Total Score: 15%)<\/strong><ul><li>At what stage is the product\/service roll-out?<\/li><\/ul><ul><li>What type of intellectual property protection is applicable?<\/li><\/ul><ul><li>Is there any intellectual property protection in place?<\/li><\/ul><\/li><li><strong>Strategic relationships (Total Score: 15%)<\/strong><ul><li>Is there an advisory board and how many advisors are on the board?<\/li><\/ul><ul><li>How many current shareholders are there?<\/li><\/ul><ul><li>Do you have legal counselors?<\/li><\/ul><ul><li>How strong is your relationship with key strategic partners?<\/li><\/ul><\/li><li><strong>Operating stage (Total Score: 20%)<\/strong><ul><li>What stage of development is the company at?<\/li><\/ul><ul><li>Is the company currently profitable?<\/li><\/ul><\/li><\/ul>\n\n\n\n<p>Business valuation is the process or set of procedures, used to ascertain the economic value of a business, a unit or an owner\u2019s interest in a business. It is essentially the worth of your business in monetary terms. Do you have a number for this?<\/p>\n\n\n\n<p>Do you want a helpful expert to value your company for you? You can search for \u2018\u2019business valuation\u2019\u2019 consultants on <a href=\"https:\/\/www.kleosafrica.com\/\">our platform<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Value (like beauty) is in the eye of the beholder &#8211; 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&#8217;s worth [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":277,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[7],"tags":[82,48],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/kleosafrica.com\/blog\/wp-json\/wp\/v2\/posts\/276"}],"collection":[{"href":"https:\/\/kleosafrica.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/kleosafrica.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/kleosafrica.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/kleosafrica.com\/blog\/wp-json\/wp\/v2\/comments?post=276"}],"version-history":[{"count":1,"href":"https:\/\/kleosafrica.com\/blog\/wp-json\/wp\/v2\/posts\/276\/revisions"}],"predecessor-version":[{"id":278,"href":"https:\/\/kleosafrica.com\/blog\/wp-json\/wp\/v2\/posts\/276\/revisions\/278"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/kleosafrica.com\/blog\/wp-json\/wp\/v2\/media\/277"}],"wp:attachment":[{"href":"https:\/\/kleosafrica.com\/blog\/wp-json\/wp\/v2\/media?parent=276"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/kleosafrica.com\/blog\/wp-json\/wp\/v2\/categories?post=276"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/kleosafrica.com\/blog\/wp-json\/wp\/v2\/tags?post=276"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}