This is a YouTube video titled "Unveiling the Secret to Valuing Startups for Success" containing a monologue or presentation from November 17, 2023, explaining different methods to value startups, including seller discretionary earnings (SE), EBITDA, and revenue, focusing on their applicability depending on business growth and structure.
So how should you value your startup? There's tons of different ways. These are kind of the three main ones that we see. So we have se, ebitda, and then revenue. So SE stands for seller discretionary earnings. This is generally best for owner operated businesses that are seeing consistent growth, but they're not at scale yet. And what you're able to do is you're able to take expenses that'll be removed once the business is acquired and a new owner steps in and add those back onto your net profit to show a number that aligns more with the true profitability of the business. And then we have ebitda, which is basically another form of how profitable is your business. This is also reserved for typically when you have a team, you're growing at a higher rate. The business is really capital efficient, and it's also bootstrapped.