One of the most contentious points when it comes to valuing a business is trying to work out which of the investors and team members contribute what… and more importantly, what those contributions are worth.
How do you measure the contributions of a non cash nature? If team members are not being compensated through salaries, how do you attach a value to the time that team members are contributing?
How do you attach a value to professional networks or introductions brought into an early stage business?
This was a question that came up on our recent webinar with Guy Addison from Addison Advisory entitled: “Preparing your business for sale – practical advice for the entrepreneur” and one of the suggestions that Guy made was to check out the Slicing Pie methodology.
You can check out the methodology HERE or watch the video below for more info.