The Harvard Law School Forum

APRIL 8, 2023

Posted by Perrie Weiner, Aaron Goodman, and Paul Chander, Baker McKenzie, on Saturday, April 8, 2023 Editor's Note: Perrie Weiner and Aaron Goodman are Partners and Paul Chander is an Associate at Baker McKenzie. This post is based on a Baker McKenzie memorandum by Mr. Weiner, Mr. Goodman, Mr. Chander, and Alexandra Stackhouse and is part of the Delaware law series ; links to other posts in the series are available here.

Mergers and Acquisitions 91

Mergers and Acquisitions Mergers M&A Utilities 91

Wizenius

APRIL 8, 2023

The quick fix - Venture Capital Method of valuation for start-ups Previously, as elaborated in my previous posts in this thread, the conventional DCF falls apart when it comes to valuing a start-up/young firm A quick (and a dirty) fix to the above problem is the VC Method where 1) Estimate revenue or earnings in the near future of the start-up (typically the period when the VC plans to make an exit) 2) Calculate the valuation (Equity Value or Enterprise Value) at the end of forecast period by a)

DCF 52

DCF Valuation Equities Public Trading 52