business-haroun/mba/ch50.org

#+title: Section 9 | Lesson 50 - How to Value Private Companies and Growth Methods
#+HTML_HEAD: <link rel="stylesheet" type="text/css" href="../_share/media/css/business.css" />

* Links
- [[./../mba-main.org][TOC | Business]]
- [[https://www.udemy.com/course/an-entire-mba-in-1-courseaward-winning-business-school-prof/learn/lecture/5805330#overview][S09:L50. How To Value Private Companies the Easy Way & Growth Methods]]

- tables: [[file:../_data/market share spreadsheet.numbers][Market Share Spreadsheet.numbers]]

* Notes

** Financial Table
| Year                              | 2015      | 2016       | 2017        |
|-----------------------------------+-----------+------------+-------------|
| Revenue                           | 2,000,000 | 20,000,000 | 350,000,000 |
| COGS (Cost of Goods Sold)         | 1,800,000 | 16,000,000 | 175,000,000 |
| Gross Profit                      | 200,000   | 4,000,000  | 175,000,000 |
| Gross Margin %                    | 10%       | 20%        | 50%         |
|-----------------------------------+-----------+------------+-------------|
| *Gross Profit = Revenue - COGS*   |           |            |             |
| *GM pct = Gross Profit / Revenue* |           |            |             |


** Financial Table: Operating Expenses

| Category                   |          2015 |           2016 |            2017 |            2018 |
|----------------------------+---------------+----------------+-----------------+-----------------|
| Sales & Marketing          |   ₪500,000.00 |  ₪4,000,000.00 |  ₪66,500,000.00 | ₪112,455,000.00 |
| % of sales                 |           25% |            20% |             19% |             17% |
| % YOY                      |               |                |                 |                 |
|----------------------------+---------------+----------------+-----------------+-----------------|
| General & Administrative   |   ₪500,000.00 |  ₪4,000,000.00 |  ₪66,500,000.00 | ₪112,455,000.00 |
| % of sales                 |           25% |            20% |             19% |             17% |
| % YOY                      |               |                |                 |                 |
|----------------------------+---------------+----------------+-----------------+-----------------|
| Research & Development     | ₪4,000,000.00 | ₪20,000,000.00 |  ₪24,500,000.00 |  ₪26,460,000.00 |
| % of sales                 |          200% |           100% |              7% |              4% |
| % YOY                      |               |                |                 |                 |
|----------------------------+---------------+----------------+-----------------+-----------------|
| *Operating Expenses Total* | ₪5,000,000.00 | ₪28,000,000.00 | ₪157,500,000.00 | ₪251,370,000.00 |


*** Operating Expenses
these can also be found in every company

- Sales & Marketing
- General & Administrative
- Research & Development

*** how to calculate
1. go see similar publicly traded companies and find out what percent of revenue/sales
   - security and exchange commision requires all publicly traded companies to put this up
2. from the initial point we make assumptions