Valuing private growth companies

A critical part of Espresso’s underwriting process is valuing the businesses we lend to. Doing so allows us to size loans appropriately and manage risks in our portfolio. Valuation matters because investors will only refinance a loan if it makes up a small portion of a company’s value. If, on the other hand, a loan accounts for too high a proportion of the total value of a business, other investors won’t pay it back. That means that understanding a business’s value is important, both before and after lending to it.

Category: Arts-humanities > Literature > Non-fiction > Business-books Upgrade Options