Valuation Methodologies

D-One's business valuation tool uses eight (8) best-practice methodologies for startups and five (5) methodologies to assess established SMEs. While some methodologies are best suited for new startups, others are ideal for estimating the value of growing or established businesses. That is why we apply a weighted average matrix to represent the growth stage of any individual business.

Rationale for Weighted Average Matrix

In the early stages of a company when performance uncertainty is at its peak, qualitative information holds a significant level of importance. As a result, companies in the Idea and Development stages tend to place a higher value on qualitative methods. This is due to the need for a more comprehensive understanding of the potential of the business idea and its associated risks.

Throughout all phases of development, the perspective of investors remains equally significant; thus, the weight of the Venture Capital (VC) approach remains relatively consistent.

Quantitative data becomes increasingly dependable as a company advances through its stages of development and establishes a solid financial history. As a result, during the Expansion stage, quantitative methods are given greater importance in evaluating a company's performance.

D-One Valuation Methods