Abstract

MOSCOSO ESCOBAR, Jenny  and  BOTERO BOTERO, Sergio. VALUATION METHODS FOR NEW VENTURES. Semest. Econ. [online]. 2013, vol.16, n.33, pp.237-264. ISSN 0120-6346.

The objective of this paper is to analyze different business valuation methods and identify the most appropriate ones for valuating companies that are in their first face of the life cycle. To meet this purpose, a literature review was done in order to compare the different valuation methods been applied in businesses of the real sector, differentiating the procedures for early stage companies from identifying their specific features in terms of availability of information and business maturity. As conclusion it is identified that the most appropriate methods to value this new ventures are based on cash flows with risk-adjusted discount rates and the certainty equivalent method in addition to alternative methods that use appropriate multipliers for the new ventures.

Keywords : Business valuation; new venture; early stage business; financing.

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