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.
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.
|Your Company Value using the average of 2 valuation methods is|
|Calculated EBITDA Multiplier|
|Calculated Discount rate|
|Average Company Valuation Analysis|
|Discounted EBITDA Cashflow|
|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|
|Additional Salary/Dividend to Founders|
|Less Corporate Debt|
|Company Value (2) is|