How do you select comparable public companies?
Few mature companies are identical, and private companies are rarely similar to large, publicly traded companies. To further complicate the matter, many private companies are using new techniques to solve old problems, or work across industries.
When selecting a publicly traded comparable company, we consider companies that operate within the same industry, share a similar business model, or serve similar clients as yours. For example, if your business is an early-stage consumer Virtual Reality / Augmented Reality startup, we consider companies that are active in the enterprise advice on virtual reality, such as FARO Technologies or Synopsys.
Ultimately, your Preferred Return Valuation Analyst will collect the information that you have provided and will select a basket of comparable public companies that would be the most accurate basket for the purpose of the valuation.