Ask HN: How to determine the value of this company?
The company has what I consider a valuable asset and therefore I find that the determination of the value of the company cannot be solely based on turnover/profits.
The company exists for 15 years, is run by two persons and the yearly sales of URL filtering solutions is less than USD 250,000.
The assets are a URL database with 53 categories and content categorisation bots with two AI engines.
The URL database has "only" 16.9 million entries but covers 99.77% of all URLs used by a large Telecom in the USA.
The coverage percentage varies; it depends on country and client type and is for some clients 99.90% or even 99.99%.
We consider to sell the company and start a new business in agriculture.
The "burning" question is how to determine the value of the URL database and the categorisation bots, and ultimately determine a reasonable/just asking price for the company.
The company exists for 15 years, is run by two persons and the yearly sales of URL filtering solutions is less than USD 250,000. The assets are a URL database with 53 categories and content categorisation bots with two AI engines. The URL database has "only" 16.9 million entries but covers 99.77% of all URLs used by a large Telecom in the USA. The coverage percentage varies; it depends on country and client type and is for some clients 99.90% or even 99.99%.
We consider to sell the company and start a new business in agriculture. The "burning" question is how to determine the value of the URL database and the categorisation bots, and ultimately determine a reasonable/just asking price for the company.
Thank you for suggestions.