Interview - Start up valuation
I got a question during an interview asking me how to value a start up but at the end he did not explain me the right answer...(SA position).
Can anyone help me?
Trending Content - Job Search Advice Forum
| +22 | Layoff Stigma | 12 | 2d |
| +18 | Down bad for career advice | 3 | 2d |
| +18 | Don’t underestimate how risky joining a startup is | 3 | 2d |
| +18 | Advice for incoming freshman @ target | 5 | 1d |
| +15 | Feeling behind | 2 | 15h |
| +14 | How to approach moving offices within a national brokerage? | 3 | 3d |
| +13 | Feeling pigeonholed due to past internships | 3 | 3d |
| +10 | Low Tiew Consulting vs Middle Office at an mid-size Investment Firm | 2 | 4d |
| +9 | Need advice - reentering industry | 1 | 5d |
| +9 | UK Career Advice | 1 | 5d |
Career Resources
I think you can ask a couple questions like this:
Does the startup have revenue?
Yes - then look at revenue valuation multiples for other companies and startups in the industry
No - then look at other Key Performance Metrics (users if tech startup) and find valuation multiples
I also got the same question (pre-revenue company) for an APAC SA role.
I answered net income multiples (comparable method) at exit period with a high discount rate (First Chicago method) discounted to present value
So at the end is just about exit multiples?
Aspernatur vitae molestiae voluptatum maiores. Quam deleniti nisi eius aspernatur quia vel nostrum. Et ea iure veritatis laudantium blanditiis exercitationem. Saepe neque porro ea neque.
Laboriosam aperiam omnis molestiae quo a voluptatem. Et at non repellat aliquid sed sint.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...