Valuations 101: The Venture Capital Method
Gust
NOVEMBER 1, 2011
The selling price can be estimated by establishing a reasonable expectation for revenues in the year of the sale and, based on those revenues, estimating earnings in the year of the sale from industry-specific statistics. Based on the Wiltbank Study, investors should expect a 27% IRR in six years. OK…let’s split the difference.
Let's personalize your content