Hi
I work for a private US based technology company - we provide s/w and server services to web-retailers. The company is just starting to move into profitability after about 5 years' trading and has an impressive list of clients numbering 100+ and including many high-street brands. Turnover has been increasing steadily and is now at around $12 million per annum with a lot of that based on repeat business and long term (2-5 year) contracts. Workforce is around 75.
I have share options in this company and would like to make some estimate of what they could potentially be worth. To do this I need to make an estimate of the likely market value of the company should it go to an IPO or be bought by another company or institution. Are there any rules of thumb for placing a market value on such companies? Is there perhaps a simple multiplier that can be applied to turnover? Anyway of putting upper/lower bounds on a valuation?
Many Thanks for any suggestions Fred