As a private company looking to raise capital or go public a valuation is a necessary step to have a successful transaction. For raising the capital you need to determine the value of the company including the pre-money and post-money valuation. For going public it is necessary to have a value of the company to decide what the structure will be for the agreement with a shell for a reverse-take-over.

Valuing private companies and specifically small private companies that have little or no revenue requires a mindset different from that of securities analysts or appraisers because, in the end, it is the final agreement between the parties involved that counts. However, a starting point is needed.

There are different methods of valuation for companies of different sizes, stage of development, industry and revenue models. ITB Solutions will work with management to come up with a fair valuation that can be used in negotiations for a satisfactory agreement.

The main approaches to valuation are:

• Income Approach
• Market Approach
• Asset-based Approach
• Relief from Royalty Approach

Some of the main methods the ITB utilizes are:

• Discounted Cash Flow Valuation
• Discounted Earnings Valuation
• Technology Factor for Valuing Assets
• Comparables
• Venture Capital Method