How to value your business? - Business & Economy - Entrepreneurship - TIK Share

How to value your business?


Stock Guru

2014-02-25

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:

  1. 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.
  2. Net cashflow: Cashflow that buyer will get after purchasing your business.
  3. Market Share
  4. Expected growth
  5. Niche
  6. Technology
  7. Management

Rahul Rai

2014-02-25

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.

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