Often we will want to discover how much a private company is worth (aka private company valuation). There is no precise way of doing this, but plenty of accepted means of making estimates. The most common for our purposes is based on a multiple of sales, determined by industry statistics.
www.stanford.edu/dept/OOD/RESEARCH/top-ten-faq/how_do_y... www.stanford.edu/dept/OOD/RESEARCH/top-ten-faq/how_do_you_determine_the_value.html
Valuation Motives and the Next Step in Private. Company Valuation s If valuing a private business for sale (in whole or part) to another ...
www.stern.nyu.edu/~adamodar/pdfiles/eqnotes/pvt.pdf
VALUING PRIVATE COMPANIES AND DIVISION ... PROCESS OF VALUING PRIVATE COMPANIES ... Step 1: Collect accounting earnings for the private company for as long as there is a history.
www.stern.nyu.edu/~adamodar/New_Home_Page/lectures/pvt.... www.stern.nyu.edu/~adamodar/New_Home_Page/lectures/pvt.html
The other is from my father who is the founder and CEO of a small battery development company. ... Valuing a private company is similar to valuing a public company. If the assets produce a fairly stable stream of cash flows, we use the Anheuer-Busch style of valuation.
finance.eller.arizona.edu/lam/wkend/q09.html
A private company classically will value conservatively at 10-20- times trailing 12 months earnings. Public companies will value anywhere from 10-times ...
www.stellar.org/global/e-fin4.html
To demystify matters, let's start at the one point in time when a private company's stock situation is straightforward: incorporation. Generally, in an incorporation an owner, with a lawyer's assistance, chooses a corporate structure and files the necessary paperwork with the secretary of state's office.
www.inc.com/magazine/20000501/18710.html
For private companies, valuations peaked sometime around January 1999, according to Business Valuation Resources, a Portland, Oreg.-based company that tracks private company sale transactions. Unfortunately, since the decline began in 1999, the business cycle has not yet rebounded.
www.inc.com/magazine/20030701/25661.html
Valuing Private Company Stock for Compensation Purposes - Practical Guidance ... The Section 409A proposed regulations provide two primary "safe harbor" methods for valuing private company stock, consistent use of which will provide a presumption of reasonable valuation that the IRS can rebut only by showing that either...
www.perkinscoie.com/news/pubs_detail.aspx?publication=9... www.perkinscoie.com/news/pubs_detail.aspx?publication=930&op=updates
This article summarizes the key reasons for the increased focus on the valuation of private company stock and offers practical guidance for private companies and their boards of directors.
www.perkinscoie.com/news/pubs_detail.aspx?publication=1... www.perkinscoie.com/news/pubs_detail.aspx?publication=1176
This report can be purchased from BizMiner.com for $79.00. The charge will appear on your next credit card statement as BizMiner/Brandow Company. Upon purchase, you will receive instructions on how to access this report online as a .pdf file.
valuationresources.com/Misc/ValuationMultiples.htm