Home
Distressed Businesses
  • All Distressed Businessess
  • Administrations
  • Liquidations
  • Winding Up
  • Insolvency Advice  New
Buy a Business
  • All Businesses for Sale
  • Find a Business for Sale
  • Raising Business Finance
  • Buyer Acquisition Service   New
  • Escrow Service   New
Sell a Business
  • Sell Your Business
  • List your Business
  • Seller Accounts
  • Need Help Selling?
  • Help With Finance New
  • Corporate Services  New
  • Business Valuation
  • Business Wanted Adverts
Insights & News
  • View All News
  • View All Insights
  • Exclusive Insights New
  • Video Insights
Lens
  • Search all UK Companies  New
Log in
Join Now

Deal Insight Series Highlights:

Startup vs long-established company




Learn about the difference between acquiring a startup and a long-established business.

The transcript of the interview follows:

What’s the difference between valuing a start-up and a business that been established for many years?

Well there are two main points here: one is the risk, and the other is the valuation. So when you’ve got a well-established business with years of records of turnover, and years of records of profitability, you could use that to apply a multiple to the profits. You can also look at the balance sheet and you can look at the assets that they’ve got sitting on the balance sheet. When you’re looking at a start-up, effectively you are backing an idea and the management team, which is a lot more tricky to value. And therefore when you do that, you have to develop different ways of connecting the valuation which is based on a hope and the future and the actual presence to make sure the valuation is adjusted – up or down – based on the actual performance of the business over a period of time. When you look at a steady business, I mean a business that has been around for a long period of time, it does not necessarily mean they are steady. But if you look at a long-established business, and you look at a steady business in a steady industry like accounting, for example, you could apply a multiple to what the business has done over the past three years on an average basis. And you’ll probably be not far off from the next two or three years.

See the full interview here.

Deal Insight Series


When is the right time to sell a business?


What advice would you give to someone selling their first business?


What advisors do you need when buying a business?


Sign up to our newsletter

Get news on businesses for sale and companies in administration straight to your inbox



Want access to the latest businesses for sale?

Business Sale Report is your complete solution to finding great acquisition opportunities.

Join today to receive:

  • Comprehensive range of businesses for sale
  • Make direct contact with business sellers or their intermediaries
  • Access to all UK administrations, liquidations and winding-up petitions
  • Daily email alerts for the latest businesses for sale & distressed notifications
  • Business Sale Report publication posted to you every month
  • Advertise your acquisition requirements on our "business wanted" section

All this and much more, including the latest M&A news and exclusive resources

Become a Member

Latest News

 
28
 
Jan
 

Building products manufacturer makes £3.8m acquisition | BUSINESS SALE

Building products manufacturer Epwin Group Plc has announced...

 
27
 
Jan
 

Paperchase set to be rescued in pre-pack acquisition | BUSINESS SALE

High-street stationer Paperchase is set to be acquired by Pe...

 
26
 
Jan
 

Perspective Financial Group continues acquisitive growth | BUSINESS SALE

Chorley-based financial planning and wealth management speci...


About Us

Business Sale Report is the UK's leading independent business for sale & distressed business listing service. Established in 1995, the report offers an up-to-the-minute, comprehensive overview of businesses for sale, latest distressed business listings and daily acquisition news.

Our Services

Businesses for Sale
Distressed Companies
List a Business
Help with Finance
Buyer Acquisition Service
Daily Financial Alerts
Small Businesses for Sale

Company

About Us
Insights
News
FAQs
Reviews
Terms & Conditions
Privacy Policy

Get In Touch

020 8875 0200
[email protected]
167 Oakhill Road, London, SW15 2QW
Working hours: Mon-Fri, 9am - 5:30pm


Sign up to our free newsletter



© 1995-2021. Business Sale Report Ltd. All rights reserved. www.business-sale.com.