We are a data and mobile app start-up based in the UK. We were in touch with a large brand initially about partnership but now they have said they would like to acquire us. However they want us to come up with business valuation. Our business is only a year old with small amount of traction, but strategically important to their business. They are the only bidders right now. How should we approach the negotiation and/or the initial valuation?
the start up is a quirky little animal. The most important item is to check for transferability to the buyer and scalability for future growth. Those two items, if strong, will increase the value of the company. Without them, well, not much of interest. I also like what Will said