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Decoding the Valuation Puzzle: Venture Capitalists vs. Angel Investors

Startup Valuation Blog

Venture capitalists are professional investors who manage funds provided by limited partners and invest in early-stage, high-growth companies in exchange for equity. Common valuation methods include the discounted cash flow (DCF) approach, comparable company analysis, and the venture capital method.

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Why Excel is not an Effective Business Valuation Tool?

Equilest

While Excel may be a popular tool for business analysis, it falls short when it comes to accurate business valuations. With limited features and formulas, it can be difficult to account for all the necessary parameters in a valuation, such as interest rates, equity risk premiums, and beta. You can Sign up for free here.

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M&A Valuation Methods: Your Essential Guide with 7 Key Methods

Valutico

A combination of valuation methods is used in M&A to provide a comprehensive view of a target company’s worth. Market-based methods like Comparable Companies Analysis and Precedent Transactions Analysis offer relative measures of value based on market data.

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The 7 Key Questions to Consider Before Buying a Small Business

Equilest

It indicates the business's growth potential: Reviewing a business's financial performance and health by analyzing financial metrics such as gross margin, net profit margin, return on equity, return on assets, and current ratio, can give you an idea of its growth potential and ability to generate returns for its investors.