On 15th June 2020, I took part in the first PyroTalks NanoConference and presented ResourceRush – a six minute run through resources to help you through the current pandemic. Here is part 4 of the key resources shared.
For private companies that aren’t listed on the stock exchange, Helen Brown has come up with a simple, but useful, quick calculation to estimate the value of those smaller companies:
- Calculate the total payroll, by taking the number of employees and multiplying it with the average salary for the country.
- Estimate a company’s annual costs, ie office rent, insurance, travel costs and any other typical fees.
- For the company to be viable, the total value of its sales must be bigger than the total expenses.
It’s fairly simple to incorporate activity during lockdown and furlough into this calculation.
https://www.helenbrowngroup.com/rough-privately-held-company-value-calculator/