How to value your business?
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
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.