Your company value using the average of 2 valuation method is
Calculated EBITDA Multiplier
Discount Rate
© 2019 Meristem Securities Limited

1/15What is your current annual Revenue?

2/15What is your annual earnings before interest, taxes, depreciation, and amortization (EBIDTA)?

3/15What is the value of your company's corporate debt/loan?

4/15"Excess Salary/Dividend" paid to Founders and Co Founders (if any)?

5/15What is your anticipated average revenue growth rate (0 if level)(0% to 100%)?

%

6/15How small is your company compared to your Industry (0% to 50%)?

%

7/15What is your capital Expenses divided by Ebitda - Max is 30%?

%

8/15Percent of revenue does your top customer represents? Top customer rev/ total revenue (max 50%)

%

9/15Percent of revenue that your top five customers combined represent? (max 75%)?

%

10/15Do you have a website and have more than 2 full time employees?

11/15Are your financial records audited?

12/15Do you have less than 2 years in operational business history?

13/15Do you have repeat or subsription based customers?

14/15Do you have a Mgt team with over 20 years combined experience?

15/15Does your company have Sustainable Competitive Advantage/ price premium over competition?

Business Valuation Report

Date:

Output Summary


Typically Nigerian Startups companies are valued for between 3x to 5x normalized EBITDA by private equity investors. The difference in the multiple is generally the result of a variety of characteristics specific to your business. In additon we will alaso determine the value of your business today based on discounted future cash flows with consideration to "excess compensation" paid to owners, level of risk, and possible adjustments for small size or lack of marketability.

Opinion letter

The enclosed Valuation Report is prepared by Meristem Capital Limited for the exclusive and confidential use. In undertaking this engagement, we have relied on the historical financial information provided by the management of the company. We also moderated the forecast provided by the company and the business risk of the industry.

For our valuation, we utilized multiple of earnings and adjusted discounted EBITDA Cash flow Models. We acknowledge that there are challenges in making forecasts, and by implication, actual earnings and cash flows might not converge to the forecasts made and the variations can be material.

This is an estimate only and not a binding valuation of your company or commitment to buy.
Your Company Value using the average of 2 valuation methods is
Calculated EBITDA Multiplier
Calculated Discount rate
Average Company Valuation Analysis
Discounted EBITDA Cashflow
EBITDA MULTIPLE
Average
Summary Analysis Adjusted Discounted EBITDA Cashflow
Total future earnings plus additional compensation to founders
Calculated discount rate
Present value of today's earnings/excess compensation
Less adjustment for small size/lack of marketability
Estimated Company value (1)
Summary Analysis - Ebitda Multiplier
EBITDA
Additional Salary/Dividend to Founders
Adjusted EBITDA
Multiple (x)
Enterprise Value
Less Corporate Debt
Company Value (2) is
This information may help you analyze your financial needs. It is based on information and assumptions provided by you regarding your goals, expectations and financial situation. The calculations do not infer that the company assumes any fiduciary duties. The calculations provided should not be construed as financial, legal or tax advice. In addition, such information should not be relied upon as the only source of information. This information is supplied from sources we believe to be reliable but we cannot guarantee its accuracy. Hypothetical illustrations may provide historical or current performance information. Past performance does not guarantee nor indicate future results.