Exit Value Page - Support Guide

The Exit Value page is a new section in your Equidam valuation report that shows the projected future value of your company at the end of your forecast period. This helps you understand what your company could be worth in 3-5 years if you achieve your financial projections.

When you view your valuation report, the Exit Value page displays:

1. Weighted Exit Value - A single number representing your company's projected value at exit

2. Exit Values by Method - A breakdown showing how each valuation method (VC Method, DCF with Long-Term Growth, DCF with Exit Multiples) calculates your potential exit value

3. Return on Investment (ROI) - Both total ROI and annualized ROI showing the potential returns for investors

4. Method Weights - Visual indicators showing how much each method contributes to your weighted exit value

5. Key Assumptions - The discount rates, multiples, and growth rates used in the calculations

The exit value is not a prediction that you must sell your company. Instead, it represents:

- The forecasted value of your company at the end of your projection period (typically 3-5 years)

- What your company could be worth if you achieve your projected financial performance

- A useful benchmark for understanding potential value creation over time

Think of it as answering the question: "If my company hits its targets, what could it be worth in the future?"

This is the main number at the top of the page. It combines the exit values from multiple valuation methods, weighted by their relative importance. For example:

- If your weighted exit value is €5.2M and you're currently valued at €1.5M, this shows potential growth to €5.2M

- The calculation uses the same proven methodology as your current valuation

Your Exit Value page shows two types of ROI:

1. Total ROI - The overall percentage return from your current valuation to your exit value

- Example: 252.3% means the investment could grow 2.5x over the forecast period

2. Annualized ROI - The yearly compound growth rate (CAGR)

- Example: 52.2% annual return shows strong year-over-year growth potential

- This helps investors compare your opportunity against other investments

The bar chart shows how each valuation method calculates your exit value:

- VC Method - Based on revenue or EBITDA multiples common in your industry

- DCF Long-Term Growth - Projects cash flows with a perpetual growth rate

- DCF Exit Multiples - Uses exit multiples applied to your final year metrics

Different methods may produce different values. Equidam combines them intelligently to give you a balanced view.

The circular gauges show how much each method contributes to your weighted average. These weights are determined by:

- Your company's development stage

- Industry best practices

- Your advanced settings (if you've customized weights)

The Exit Value page appears automatically in your report when you have:

- Completed the financial projections questionnaire

- At least one of the financial valuation methods (VC, DCF-LTG, or DCF-MULT) has calculated values

If you don't see the Exit Value page, it's because:

- You haven't completed your financial projections yet

- Your company profile doesn't have the required financial data for these valuation methods

Solution: Complete the financials section of your questionnaire to enable this page.

- Current Valuation - What your company is worth today based on current and projected performance, discounted to present value

- Exit Value - What your company could be worth in the future (3-5 years) without discounting back to today

Both numbers are important: current valuation for fundraising now, exit value for understanding future potential.

High ROI percentages (like 200%+ total ROI or 40%+ annualized) are common for early-stage startups because:

- You're valued lower today based on current traction and risk

- Your projections show significant growth over 3-5 years

- Investors expect high returns to compensate for startup risk

These numbers represent potential returns **if** you achieve your projections.

Yes, advanced users can:

- Adjust method weights in the Advanced Settings

- Modify discount rates and growth assumptions

- Change the multiples used for valuation

These customizations will automatically update your exit value calculations.

Check the assumptions table at the bottom of the Exit Value page:

- Discount Rates - Higher rates = more conservative valuation

- Multiples - Should match your industry benchmarks (check our industry data)

- Growth Rates - Long-term growth should be realistic and sustainable

If any assumptions look off, review your questionnaire answers or adjust advanced settings.

When talking to investors:

- Share both your current valuation and exit value

- Explain the ROI potential shown on this page

- Use the exit value to discuss value creation over the investment period

- Highlight how different methods arrive at similar conclusions (if they do)

Use your exit value to:

- Set long-term value creation targets

- Understand what financial performance is needed to reach your goals

- Model different exit scenarios by adjusting your projections

- Track progress against your forecasted exit value over time

The Exit Value page provides:

- Clear visualization of potential value creation

- Multiple validation points through different valuation methods

- Transparent assumptions that stakeholders can review

- Professional presentation format suitable for formal reporting

The exit value is calculated as a weighted average of terminal values from all available financial methods. Terminal values represent the value at the end of your forecast period, assuming your company survives and meets projections.

Note that actual transaction values may differ from exit values due to:

- Liquidity considerations (private company discounts)

- Market conditions at time of exit

- Negotiation dynamics

- Company-specific factors

The exit value provides a benchmark, but actual exit prices are determined by market conditions and negotiations.

If you have questions about your Exit Value page:

1. Check the assumptions table to verify your inputs

2. Review your financial projections in the questionnaire

3. Contact Equidam support at support@equidam.com

4. Schedule a consultation with our valuation experts