Valtech’s valuation team has recently completed valuation for a start-up with operation of photo booth. The subject company is a Hong Kong brand specializing in four-grid selfie photo booths, offering stylish, convenient, and high-quality shooting experiences through collaborations with IPs, artists, and fandoms. The subject valuation is for management reference purpose.
After an in-depth insights about the business model of the company and thoroughly reviewing the financial information, we concluded that the market approach was the most appropriate. Sufficient comparable publicly listed companies and private transactions were available, enabling reliable comparisons and robust valuation multiples. Moreover, the startup’s rapid growth phase and limited availability of detailed long-term projections rendered the income approach less feasible.
The valuation was primarily performed under the Guideline Publicly-Traded Comparable (GPTC) Method, with the Guideline Transactions (GT) Method applied for cross-checking. We selected the revenue multiple—a common metric for growth-stage and late-stage companies—applied industry-standard multiple to the subject company’s current revenues. For robustness, we analyzed hundreds of private funding rounds in millennial and Gen Z-oriented experiential and trendy product sectors, skillfully benchmarking the subject company’s funding round against observable transactions to derive an implied valuation.
Beyond these quantitative analyses, we incorporated a sophisticated qualitative benchmarking exercise. This highlighted the subject company’s positioning among local competitors offering similar four-frame selfie photo booth experiences.
By integrating empirical research and in-depth local market benchmarking, Valtech ensures valuations are insightful for decision-making. This holistic approach exemplifies Valtech’s strength in providing nuanced and tailor-made valuations.