Startup 101 Legal Series – How do I arrive at the company valuation

Company Valuation is the process of determining the economic value of the company. Arriving at the company’s valuation is a function of many components. Sharda Balaji, the founder of Novojuris, throws light on these components which together will help you in arriving at the valuation of the company.

Sharda Balaji says that it is difficult to arrive at the valuation of the company in the initial years. Company Valuation refers to calculating the future worth of an entity. It is primarily done by finance experts. But it could be overwhelming for young entrepreneurs figuring out factors affecting this valuation. Company valuation plays a major role in acquiring and retaining an investor. Further it may be necessary for other diligence purposes. There might be well known procedure in practice
already. In spite of that, every company has to be valued on its own terms and distinctive features.

What are the factors affecting the same? How to arrive at an accurate valuation? How important it is to be aware of this process? Sharda, through her expertise as an in-house attorney in various MNCs, guides us in this process. Moreover, she donned the roles of legal counsel, founder, angel investor, Independent director, and trustee.

This Start-up 101 series primarily strives to teach the fundamentals of business to novice entrepreneurs. They are a series of crisp, straight to the point solutions to all your confusions. Also, we have catered huge information in form of plain, uncluttered Q and As.

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