Market and company considerations need to be made. Three common approaches to determining business value: asset approach, income approach and market approach.
The key value drivers for business are: technology development, proving the business model, borrow pipeline and investor appetite, building scale and branding, moving into the ‘black’/ profitability, trust and resilience.
A multiple method approach is usually considered more accurate.
In addition to those mentioned above, other possible methods to use include: discounted cash flow, revenue or book value, replacement cost, price to earnings ratio, strategic/competitive value.
We help fintechs assess the best approach to valuing their business as well as providing support and advice around potential exit events.