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Writer's pictureMBDA Manhattan Center

DO YOU KNOW WHAT YOUR COMPANY'S "PRE-MONEY" VALUATION IS?

Pre-Money Valuation is simply the estimated value of your company before an external investment is made or before financing is put into service. We know our company is like a part of you- we understand you put it all on the line everyday. Your company means the world to you, but when it comes to valuation you have to be objective. You must know what your company is worth, and be familiar with the process of valuation in order to be serious about taking on investors. The valuation of your company is dynamic; it is important for you to track your liabilities as well as to monitor your overall company's worth. Does your company own your physical site ( real estate)? What is the value of your estimated contracts? Do you own equipment and fixtures? Have your registered patents, trademarks, or other intellectual property? Other factors must also be account for- don't undervalue: Your experience, track record of performance and the market for your goods and services all count towards value. Hint: Do your homework. Some industries use a multiple of annual revenue as a metric to help them get close to the mark.

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