Recommendation on Valuation and Budgeting in Start-Up Company PT X

Abstract

This research aims to get and give a recommendation on valuation calculation at PT X, a start-up company that mainly does management consultation with technology-based, also to suggest on financial planning and control to achieve the projected financial result with the desired valuation. With valuation on hand, PT X can explore the possibility get fund from the investor or even to go public. Financial planning is very crucial for PT X that is currently only having sales target without having profit and loss budgeting or cash flow projection. Financial control is also urgently required by PT X that is presently facing an extremely high burn rate. After assessed use multiple valuation methods, it resulted mostly on positive valuation, which means PT X has the potential to take funding option, either from a loan or additional capital from the investor. However, PT X need to do proper financial planning and control to achieve that valuation result. Financial planning through participative budgeting is the alternatives that PT X can use to build their financial budget. Meanwhile, monthly financial control through variance analysis both on cash flow and profit and loss statement is required to do.