BHVC develops comprehensive business valuations, performed for new and existing businesses for the purposes of selling the business or determining the value of equity participation. A number of widely accepted valuation methodologies are used, with a weighted-average valuation determining a final value.

 There are a number of reasons a valuation of your business will become necessary.  When you first seek investors, you need what is called a "pre-money" valuation, based on your expected financial results going forward.   This will serve as a basis from which you can negotiate terms with potential investors.  As you start operations and seek additional rounds of capital, your "post money" valuations will help determine further equity participation in your business.  As a general rule of thumb, the earliest rounds of financing will require the largest discounts from your valuations, as perceived risk in earlier stages is considered larger.  Your final valuation will be if/when you decide to sell your business.   
 
A business valuation is not a simple concept.  There are many different approaches to valuing a company, and Blue Horizon uses a weighted average valuation approach to give you the most accurate assessment of value.   Typically, elements of such a valuation include:

1. Discounted cash flow (DCF) valuation
2. Comparable sales valuation
3. Asset-based valuation
4. Multiple of revenues valuation
5. Multiple of income valuation
6. Membership or customer volume valuation
   

Typically the DCF metric gets the largest weight, but all method are considered and contribute to the overall valuation.