SENDING INVESTMENT CAPITAL NEED TO VALUATE THE BUSINESS

Raising capital is a necessary activity and can take place in any company. When successfully calling for capital, it not only helps businesses expand their business activities and restructure but also increases the success of ongoing projects. However, one of the first factors to successful fundraising is determining the companys value.

What is calling for investment capital?

Calling for investment capital is an activity where a business or individual (startup) offers specific plans to convince investors to pour capital into their business.

In other words, calling for investment capital is when companies and startups present their strategies, business ideas, current values, future development goals, etc. to convince investors. Investment funds, investment funds put capital - money in to realize the strategies and goals of that business. At the same time, when calling for investment capital, the calling enterprise or individual will have to pay a profit or share of the business according to the signed agreements.

Factors to prepare when calling for investment capital

When calling for investment capital from businesses, investors, investment funds, etc., companies need to prepare detailed steps and plans to maximize the success of the call. Depending on the field, size and value of the business, the factors that need to be prepared for capital calling will be different. In general, the following elements are included:

1. Select the method/channel to call for investment capital

Currently, there are many ways to call for investment capital for the company, including some of the following main channels:

• Calling for investment capital through banks
• Calling for investment capital through business development investment funds
• Call for capital from venture capital funds
• Call for investment capital from reality TV shows
• Call for investment capital through crowdfunding websites/apps
• Call for investment capital from international investors

2. Develop a detailed plan for calling for investment capital

A methodical, detailed and persuasive plan is indispensable for businesses to convince investors to "put down money". This plan not only includes business plans, marketing, human resources ... but also shows the goals of the growth model, contingency plans for development and capital raising.

3. Determining enterprise value

When presenting to call for investors to contribute capital to the business, business owners must always determine how much their current business value is, expected growth in the near future, but competitive advantages, challenges…so that investors can trust and see the potential and benefits of investing in that company.

Note, the company valuation needs to be done by an independent, objective valuation company with sufficient legal capacity and expertise to make the most accurate assessment.

4. Build a presentation to raise capital with investors

Calling capital for small and medium enterprises or for large projects, startups...if the presentation is not well prepared, it will make the companys capital raising process highly likely to fail. Therefore, this can be considered as one of the most important pictures of the process of calling for investment capital. A good project presentation should include the following:

- What is the project idea and business idea, in which field?
- Advantages of the company/project, customer segment.
- Target customers, the purpose of the project.
- Project/idea implementation cash flow.
- Implementation team
- Actual test results of the project/idea.

Why is corporate valuation important in raising capital?

Valuing the company to raise capital or buy, sell, transfer, merge ... is an indispensable requirement to convince investors, because when conducting negotiations between the parties, it is necessary to have an accurate and objective number of value. as a basis for negotiation and negotiation.

If the value is offered by the seller/call for capital, it will certainly be difficult to convince investors because of subjective factors. On the contrary, if it is offered by the investor, it is also difficult to convince the seller/call for investment. Therefore, the valuation needs an independent, objective, legally competent and professional unit to stand out and can protect the value when it is necessary to make a presentation.

Cost of business valuation when calling for investment capital

Company valuation fee for the purpose of calling for capital is the fee that the company needs to price to hire companies, valuation units to stand out. Normally, the valuation fee will be calculated as a percentage (%) of the total value of the measured business/project plus per diem and testing costs (if any). Or the two parties can agree on an enterprise valuation fee according to the provisions of the law.

Reputable Enterprise Valuation Company:

Hoang Quan Appraisal (HQA) is one of the leading prestigious appraisal companies with a nationwide system of branches and offices. Besides, our Business Valuation - SunAsset service will give customers the best service experience, customers will be consulted and helped determine the value of each type. assets from which to determine the most reasonable price to help customers best achieve their goals.