Initial Enterprise Value Evaluation

With the development of economic and financial, enterprise is becoming commodities in market transactions, corporate financing and investment activities are carried out through the market. The enterprise market a strong impetus to optimal allocation of resources, and promote economic development. For positive early-stage companies as for their financing needs is to become the vanguard in the market. The enterprise value of the early start is the first condition assessment for the enterprise market buyers and sellers. Therefore, how to valuat the initial companies in a reasonable way valuations become academics and practitioners widespread topic of discussion.Comparing with the mature companies, The early start hi-tech enterprises have different characteristics, most of them with high-tech, high-risk and high-growth characteristics. And it is focused on the company’s prospects and growth potential,characteristics. Early start-ups with strong growth potential, high risk, so there are usually have some limitations when use the traditional valuation model for the valuation of the early days of high-tech enterprises In this paper, our the full analysis characteristics of initial start-ups in the valuation of the unique characteristics of the assessment, and will be the basis of corporate life cycle theory of the early start-ups into gestation, infancy and toddler stages of start-ups, and in accordance with these three stages value characteristics and evaluate the characteristics of enterprises, were selected appropriate assessment methods and models to evaluate and valuation respectively as to ensure the reasonableness and accuracy of the estimates.The innovation of this paper lies in based on the corporate life cycle theory, we consider gestation, infancy and toddler early stages of high-tech start-ups as entrepreneurial start-up phase. In this paper our only deals with the huge financing needs of infants and toddlers of early stage startups. According infancy and value characteristics and evaluate the characteristics of high-tech start early toddlerenterprises, companies have chosen to infancy venture based assessment methods to the valuation process, for toddlers companies are using the discounted cash flow method and Combination of option valuation methods, to ensure the basis of reasonableness and accuracy of the valuation on the establishment of a scientific evaluation system of the early days of enterprise value.