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
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.
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...