Whatsapp is sold to facebook at a great price. The price was every enterpreuners dream.
How to value a business? What are the factors that one need to consider before entering into a business sale agreement?
The various factors which may have an impact on pricing your business are:
- Synergy: The value created by buying your business is the main factor for any potential buyer. The more synergy will value your business at a premium price. In case of Whatsapp, facebook can access more big data and plan its advertising accordingly.
- Net cashflow: Cashflow that buyer will get after purchasing your business.
- Market Share
- Expected growth
Posted 3 years, 7 months ago by Stock Guru
Whatsapp and facebook deal has given a light to enterpreuner sprits. The valuation of Whatsapp is at unimaginable level.
Only 4 Indian companies are worth more than whatsapp.
Agree with your points for valuation of business. Facebook bought whatsapp for its market share, synergy and growth potential.
Posted 3 years, 7 months ago by Rahul Rai
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