Many high-growth South African businesses are unsure around how to value their equity – particularly if they are not generating revenue or cashflow – metrics which are typically used in company valuations.
The “Slicing Pie” or Dynamic Equity methodology is taking off in the US and is a great way for valuing your business.
Slicing Pie is not complicated. It is a simple formula based on the principle that a person’s % share of the equity should always be equal to that person’s share of the at-risk contributions.
One of our partners – Guy Addison from Addison Inc – was recently featured on ClassicFM with Michael Avery discussing Slicing Pie / Dynamic Equity businesses valuations.
If you would like more information / a consultation around applying Dynamic Equity models to your business or would like assistance with a business valuation, please complete the form below and one of our Problem-Solvers will be in touch with you. Alternatively, mail us on marc@decusatio.co.za