START-UP VALUATION OF EMAGO (PT. TELEKOMUNIKASI INDONESIA, Tbk) USING BERKUS & RISK FACTOR SUMMATION METHODS.

• Main Author: Laila Nursyahbani - 29116147, Rizkya
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/30604
• Institution: Institut Teknologi Bandung

The world economy is experiencing a tremendous disruptive event. Old players can be <br /> <br /> disrupted by newcomers who are still small because they make a simple product and <br /> <br /> much cheaper, in this case it is start-up. Start-up is a young company under the age of 3 <br /> <br /> years based on digital that aims to develop viable business models and create innovative <br /> <br /> product, service, platform, or process that have very limited histories, small or even <br /> <br /> have no revenues, dependent on private equity, and dominated by intangible assets <br /> <br /> instead of tangible assets. This disruption phenomenon is also felt by PT. Telkom as the <br /> <br /> largest Telecommunication company in Indonesia. To respond the rapid changes in this <br /> <br /> era, Telkom is transforming its legacy business to digital business line. In January 2017, <br /> <br /> from the initiative of Directorate of Human Capital Management, the company <br /> <br /> established an incubator program named Amoeba to accommodate its employees in <br /> <br /> terms of sharing their ideas and creating solution through establishing start-ups to <br /> <br /> generate new business and solution for the on-going issue. Amoeba adopted a lean startup <br /> <br /> model where each one of the start-up goes through 4 stages of validation process. In <br /> <br /> each stage, the start-ups require ease of financing from Telkom. Having to invest in <br /> <br /> Amoeba, Telkom wants to asses its start-ups in order to determine how much the <br /> <br /> business worth. However, assessing digital start-ups will slightly different than the <br /> <br /> conventional business considering the characteristics of start-up itself. Thus, the <br /> <br /> valuation on start-ups that have not reached the profitability level or still on the seed <br /> <br /> stage is based on a number of empirical assumptions under considerable uncertainty <br /> <br /> conditions. There are some valuation methods for digital start-up emerged such as <br /> <br /> Berkus Method, Risk Factor Summation, Scorecard Method, Comparable Transactions, <br /> <br /> Book Value, Liquidation Value, Discounted Cash Flow, First Chicago, and Venture <br /> <br /> Capital. Most of the literature described what the methodology is, the provisions on <br /> <br /> calculating the valuation but limited only to what factors that being assessed and how <br /> <br /> much value that the start-up could get. Therefore, the author made a modification on <br /> <br /> Berkus and Risk Factor Summation methods in order to generate a better understanding <br /> <br /> regarding the methods as well as to simplify the valuation process that will conducted <br /> <br /> by PT. Telkom.