Hi there, I’m back. I realize that you are making less sense out of my blogs than what I’d anticipated. If it was to be otherwise, I should’ve clocked at least one bonus in ma paycheck!
Mm, I can apologize with you guys for that. When you walk in to our offices next time, please quote my name.
Ϟ Whoa: we closed a recent transaction!
My sales pitch to you: our valuations are market relevant and can help you negotiate a prospective transaction. This means: we do it with purpose, data, and relevance.
New technologies are cutting through our nerves every other day. Like Pokémon Go, these overnight changes are a result of about 10 to 20 years of hard work. Start investing in innovation, today!
With the recent acquisition of Jabong.com by Flipkart’s own loss making Myntra, it is fair for people to question the very fundamentals of early stage valuations. In 2014, Jabong.com failed to strike a deal with Amazon over a valuation mismatch. The company was seeking a valuation of about USD 1.2 Bn at the time. This recent transaction values the company at around USD 70 Mn.
Life is turning hard for me with every other report like this. How do I sell our valuation suit? – Got ideas, ping me in person.
JV’s and strategic alliances are one way to keep you in the game. The structures of such deals are complex. A JV or strategic alliance transaction needs fair amounts of special attention. This is because, you are developing something for a purpose that cannot be easily quantified. As purposes vary, the natures of transactions also vary. These are transactions that yield returns over a longer cycle.
You are in the process of making an impact in a competitive market. A JV or SA comes over with deep market insights backed with data and rationale. You are identifying two key elements: what you have and what you don’t have. Your prospective JV or SA partner is going to supplement with what you don’t have, in exchange for what you have. The “have” part includes everything else but not cash.
How do you value this transaction? Hold on. I also don’t have a straight answer. But, what I do have is a way to find out the answer. I have strict instructions to not disclose any further. This means, you can walk to our offices and get to know more about our valuation approach to JV and SA transactions.
Companies with cash muscles are exploring M&A opportunities out there. It is high time that you spare not. A successful JV or SA is a bridge towards creating substantial value for a later exit. At some point in time on your journey as entrepreneurs you wake up to realize that it is only a money game at the end; in that case, why not wake up to more money?
PS: I still have concerns over the reach of this blog for which I have to sit down with our BD head and get things sorted. There are chances that this feeling may have influenced my mood at the time of writing this.
PSS: I am one of those fewer guys who have trouble with understanding Bitcoins and Blockchain; wondering if you could be of any help to me!