Should you publicly disclose your company's valuation?

By determining the price at which investors purchase shares—and, consequently, the percentage of the company they own—valuation serves as the starting point for any negotiation. Furthermore, as a cornerstone of defining the long-term vision, valuation plays a role in strategic decisions while helping to shape how partners and customers perceive the startup by enhancing its credibility and appeal.

It's hard to dampen the enthusiasm of startup founders, who—driven by their passion and vision—may be eager to showcase their project's potential and, at times, even succumb to "delusions of grandeur" by overvaluing their business.

Coralie Oger, Managing Partner in charge of M&A at Scotto Partners—a firm particularly well-known for its expertise in management buyouts, especially in LBOs and long-term financing transactions—would instinctively advise saying as little as possible, taking into account several factors, starting with contractual considerations.

Maddyness- Coralie Oger

Read the full article