Business Valuation As It Is Currently Presented, Essay

Business Valuation As it is currently presented, I would probably not invest in this particular company. I would, however, invest in this company under a number of circumstances. The first requirement that I would consider would be the management of the firm and how much the two principals are investing of their own capital. The problem that I have is that while the idea being presented is an intriguing one; as a venture capitalist I would likely look at the initial investment as being rather modest -- based upon the projected size of the market -- but to assuage my fears somewhat on a project of this type, I would like additional information on the strengths and weaknesses of the management personnel.

Additionally, I would be most interested in determining who the other managers are going to be and their expertise as well. There are plenty of gaps in the management team; the question is how quickly can the personnel be assembled and how likely is it that the two founders will be able to entice personnel with the required...

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As one recent report demonstrated "Staffing problems can arise because of poor delegation skills or a failure by leaders to respond appropriately to economic factors" (Thompson, 2012, p. 21). Ensuring that the two principals understand and are efficient in delegating the necessary tasks would be of primary importance.
Finding the information that would help in determining management expertise is not a difficult endeavor, calling the Human Resource managers from previous firms would be helpful, as would speaking directly with John and Jane Doe. A face-to-face interview process would be necessary, and interviewing management's references in person would be beneficial as well.

As for the product itself, it seems feasible, and may actually work. Since it is a total renovation (or innovation) of a very cumbersome market and product, one cannot be sure that it will work as needed. One of the risks with investing in this type of innovation is that it does not work…

Sources Used in Documents:

References

Caverlee, J. & Bae, J.; (2006) Workflow Management for Enterprise Transformation, Georgia Institute of Technology,

Thomspon, J.; (2012) Transformational leadership can improve workforce competencies, Nursing Management -- UK, Vol. 18, Issue 10, pp. 21-24


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