Entrepreneurs do you know how to easily value your company pre and post money?

Entrepreneurs do you know how to easily value your company pre and post money? from Commonwealth Capital, LLC

By: Commonwealth Capital, LLC  05/11/2015
Keywords: Business News, Financial News, business financing

Although there’s an unlimited number of ways to structure a deal, there are a limited number of acceptable ways to valuate a company. Wall Street valuates publicly traded companies’ common stock primarily based on “Price Earnings” or PE ratios. Then the company value is arrived at by multiplying the number of total outstanding shares by the price per share, less total liabilities (debt). It would seem impossible to use this method to valuate a privately held start-up or early stage company, since most are “pre-profit” or “pre-revenue,” but it’s not. One simply uses the same metrics with a few adjustments. Valuating start-up and early stage companies pre and post-investment starts with producing 5-year, pro forma financial projections with reasonable revenue and cost assumptions. Once one has arrived at a future value of the company, by multiplying the projected earnings per share based on a PE Ratio against the number outstanding common equity shares, less debt, one simply discounts to that future value (end of 5 years for instance) to the Net Present Value, “NPV.” The beauty of Financial Architect® is that this is done quickly, easily and accurately with the use of CapPro™ included in each program. Want to know more? Download your complimentary copy of the abridge edition of “The Secrets of Wall Street – Raising Capital for Start-Up and Early Stage Companies”. https://www.commonwealthcapital.com/Financial_Architect/

Keywords: business financing, Business Funding, Business News, Expansion Capital, Finance News, Financial News, Private Placement Programs, Regulation D 504, Regulation D 506(c), securities offering document, Seed Capital, Startup Company,

Contact Commonwealth Capital, LLC

Email

Print this page

Other news and updates from Commonwealth Capital, LLC

Did You Know You Can Extend New Regulation Crowdfunding Limitations? from Commonwealth Capital, LLC thumbnail
08/22/2016

Did You Know You Can Extend New Regulation Crowdfunding Limitations?

VENTURE FUNDING for Start-Up and Early Stage Companies - Exclusively


Crowd-Funding Success from Commonwealth Capital, LLC thumbnail
08/01/2016

Crowd-Funding Success

Crowd Funding Success...To help entrepreneurs get started right, Commonwealth Capital provides a complimentary 40-page Abridged Edition of the e-book, downloadable from its website. The new Chapter Two includes comprehensive excerpts and summaries from the 685-page document known as the SEC Final Rules regarding crowdfunding. More importantly, the Abridged Edition enables entrepreneurs to make qualified decisions on whether a securities offering is right for their company’s capitalization needs


START-UP AND EARLY STAGE COMPANIES GET FUNDED BY COMMONWEALTH CAPITAL from Commonwealth Capital, LLC thumbnail
06/09/2015

START-UP AND EARLY STAGE COMPANIES GET FUNDED BY COMMONWEALTH CAPITAL

START-UP AND EARLY STAGE COMPANIES GET FUNDED BY COMMONWEALTH CAPITAL


Entrepreneurs do you know what deal structures work in today’s current investor climate and why? from Commonwealth Capital, LLC thumbnail
05/16/2015

Entrepreneurs do you know what deal structures work in today’s current investor climate and why?

FINANCIAL ARCHITECT "The Fastest Way to Legally Raise Capital - Guaranteed"


Do you know what investors are looking for in this market environment? from Commonwealth Capital, LLC thumbnail
05/02/2015

Do you know what investors are looking for in this market environment?

FINANCIAL ARCHITECT "The Fastest Way to Legally Raise Capital - Guaranteed"


Did you know under Regulation D Rule 506 you do not need to escrow funds? from Commonwealth Capital, LLC thumbnail
04/20/2015

Did you know under Regulation D Rule 506 you do not need to escrow funds?

No need to escrow funds under Regulation D 506(b) or 506(c).



CROWD FUNDING ISSUES from Commonwealth Capital, LLC thumbnail
03/03/2015

CROWD FUNDING ISSUES

“FINANCIAL ARCHITECT – The Fastest Way to Legally Raise Capital – Guaranteed”