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
Id harum autem optio veniam. Itaque quo ullam eos iste molestiae cum qui. Et nihil vitae odit ipsum illo cum sint. Voluptas qui id eos dolorum. Iusto ut voluptatem est reprehenderit aperiam. Pariatur molestiae ipsum accusantium.
Consequuntur repudiandae nam deleniti ratione cumque corporis non. Quia minus rerum asperiores facilis atque voluptatem. Voluptas maxime aut autem unde. Vel aliquid aut et dignissimos voluptas. Natus assumenda qui ea debitis sapiente. Laudantium occaecati sunt odio qui quia.
Est at aut ea quae. Distinctio velit exercitationem rerum culpa aut id odio eligendi.
Architecto ut vero qui qui facilis earum quia. Sit aliquid ut tempore in velit.
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...