START-UP VALUATION OF EMAGO (PT. TELEKOMUNIKASI INDONESIA, Tbk) USING BERKUS & RISK FACTOR SUMMATION METHODS
The world economy is experiencing a tremendous disruptive event. Old players can be <br /> <br /> <br /> <br /> disrupted by newcomers who are still small because they make a simple product and much <br /> <br /> <br /> <br /> cheaper, in this...
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| Format: | Theses |
| Language: | Indonesia |
| Online Access: | https://digilib.itb.ac.id/gdl/view/30605 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | The world economy is experiencing a tremendous disruptive event. Old players can be <br />
<br />
<br />
<br />
disrupted by newcomers who are still small because they make a simple product and much <br />
<br />
<br />
<br />
cheaper, in this case it is start-up. Start-up is a young company under the age of 3 years <br />
<br />
<br />
<br />
based on digital that aims to develop viable business models and create innovative product, <br />
<br />
<br />
<br />
service, platform, or process that have very limited histories, small or even have no <br />
<br />
<br />
<br />
revenues, dependent on private equity, and dominated by intangible assets instead of <br />
<br />
<br />
<br />
tangible assets. This disruption phenomenon is also felt by PT. Telkom as the largest <br />
<br />
<br />
<br />
Telecommunication company in Indonesia. To respond the rapid changes in this era, <br />
<br />
<br />
<br />
Telkom is transforming its legacy business to digital business line. In January 2017, the <br />
<br />
<br />
<br />
company established an incubator program named Amoeba consist of start-ups to generate <br />
<br />
<br />
<br />
new business and solution for the on-going issue that adopted a lean start-up model where <br />
<br />
<br />
<br />
each one of the start-up goes through stages of validation process. Having to invest in <br />
<br />
<br />
<br />
Amoeba, Telkom wants to asses its start-ups in order to determine how much the business <br />
<br />
<br />
<br />
worth. However, assessing digital start-ups will slightly different than the conventional <br />
<br />
<br />
<br />
business considering the characteristics of start-up itself. Thus, the valuation on start-ups <br />
<br />
<br />
<br />
that have not reached the profitability level or still on the seed stage is based on a number <br />
<br />
<br />
<br />
of empirical assumptions under considerable uncertainty conditions. There are some <br />
<br />
<br />
<br />
valuation methods for digital start-up emerged such as Berkus Method, Risk Factor <br />
<br />
<br />
<br />
Summation, Scorecard Method, Comparable Transactions, Book Value, Liquidation Value, <br />
<br />
<br />
<br />
Discounted Cash Flow, First Chicago, and Venture Capital. Most of the literature described <br />
<br />
<br />
<br />
what the methodology is, the provisions on calculating the valuation but limited only to <br />
<br />
<br />
<br />
what factors that being assessed and how much value that the start-up could get. Therefore, <br />
<br />
<br />
<br />
the author made a modification on Berkus and Risk Factor Summation methods in order to <br />
<br />
<br />
<br />
generate a better understanding regarding the methods as well as to simplify the valuation <br />
<br />
<br />
<br />
process that will conducted by PT. Telkom. |
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