Valuation question

Hi, 

I am looking at a tech company with $10m in ARR and profitable. They invested around $3m in a new product they want to launch in mid-2023 which they hope will generate and extra $10m in ARR over the next 5 years (so $20m ARR by 2028).

It's easy to validate the valuation for the existing business but how about the pipe dream they are selling?

1. What valuation methodology would you use?

2. What deal structure and would you offer? (knowing that we usually integrate the products to our main product suite) 

3. Do you pay for synergies? 

Thanks 

​​​​​​

1 Comments
 
Most Helpful

Et sit tempora et. Dolorum ad ut adipisci voluptatum illum at. Quaerat culpa hic ipsa possimus ipsa.

Eum eos delectus odit reprehenderit. Ducimus et perspiciatis voluptas et sunt rerum consequatur voluptate. Eius voluptatum ipsa voluptas facere. Vel tenetur accusamus iusto velit ab sit. Aliquam aperiam illo esse ea magni sit.

Ex tempore numquam vel dicta perferendis repudiandae. Eos eaque molestias est animi cum consequatur.

Career Advancement Opportunities

November 2026 Private Equity

  • Blackstone Group 99.6%
  • The Riverside Company 99.3%
  • KKR (Kohlberg Kravis Roberts) 98.9%
  • Warburg Pincus 98.5%
  • Vista Equity Partners 98.2%

Overall Employee Satisfaction

November 2026 Private Equity

  • Blackstone Group 99.6%
  • KKR (Kohlberg Kravis Roberts) 99.3%
  • The Riverside Company 98.9%
  • Ardian 98.5%
  • Warburg Pincus 98.1%

Professional Growth Opportunities

November 2026 Private Equity

  • Bain Capital 99.6%
  • Blackstone Group 99.3%
  • The Riverside Company 98.9%
  • Starwood Capital Group 98.5%
  • KKR (Kohlberg Kravis Roberts) 98.2%

Total Avg Compensation

November 2026 Private Equity

  • Principal (9) $653
  • Director/MD (24) $547
  • Vice President (100) $364
  • 3rd+ Year Associate (106) $280
  • 2nd Year Associate (236) $272
  • 1st Year Associate (414) $231
  • 3rd+ Year Analyst (33) $157
  • 2nd Year Analyst (97) $134
  • 1st Year Analyst (274) $126
  • Intern/Summer Associate (40) $79
  • Intern/Summer Analyst (357) $61
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”