Platform businesses tend to be loss-making for quite a while before suddenly flicking into profitability and then generating eye-watering cash flows. If things go well, that is.
This makes them incredibly interesting to value, as an earnings multiple approach is rarely appropriate.
In this webinar, bizval co-founders Graham Stephen and The Finance Ghost delved into the economics of platforms and some of the key metrics. They also covered the valuation approach required for these businesses and how the bizval startup offering addresses the challenges.