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Podcast: Investor Connect Podcast
Episode: Startup Funding Espresso – Valuation Method for a Secondary Sale
Description: Valuation Method for a Secondary Sale Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In pricing a secondary sale here are some valuation techniques: Estimate the value of the equity by multiplying the revenue by the multiple for similar companies. For example, SaaS companies are sold for a multiple of 10X revenues. Reduce the value of any debt the company has. Divide the remaining value by the number of outstanding shares. Use their 409A analysis to compare to the number you calculated. Remember, 4o9A’s tend to pu...