Saturday, February 11, 2012

VCCircle

Mergers, Acquisitions, Private Equity, Venture Capital, Investment Banking

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How do you value your IT project where there is so much of intangible assets and above all how so you convince the investors the value of intangible assets?

, January 01, 1970

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Asked on:	January 01, 1970
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Comments

Jacob Anthony
February 11, 2010

The valuaton is based on the value of current and pending order book and the implementation cost

KM Shravan Dharmaraj
September 20, 2009

As far as valuation of intangibles are concerned, in the case of IT cos, its more of IPR's that they would create and that falls under a separate arena similar to bran valuation

Sumit
August 17, 2009

I think this will depend on which party is stronger & liquidity situation in the market. If the company is able to get money easily - the management without any hesitation will make business plan considering post money scenario. However, if it not a founders doesn't have much bargaining power - and what they are essentially doing is not very unique - VC/PE would be in strong position and will value business pre money.

kiran roy chaudhuri
December 12, 2008

When seeking private equity , does one forecast the performance considering post money scenario and thus work out the valuation or is the valuation worked out by foirecasting the business on a pre money scenario basis.