BUSINESS VALUATION FOR COMPANY DECISION MAKING (CASE STUDY OF: PT. HIJ)

• Main Author: Nathanael Susinto, Kevin
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/68208
• Institution: Institut Teknologi Bandung

The spread of COVID-19 and technological advancement has opened many doors for start-up company around the world, especially in Indonesia. Due to the nature of the virus where it may spread through physical contact, people have been avoiding going out, aligned with government policy that restrict citizen movement such a lockdown. The consumer behavior began to shift as shown by number of people cooking at home, and number of delivery service are increasing. Seeing opportunity to serve in this market, PT HIJ is then founded to provide timely full set of fresh high-quality ingredients ready to cook delivered to the door of the customer. After one year of operation, the management experienced shortage of fund to grow the business and believed that it is right to source for new funding from the investors. As the management team have no experience in performing valuation, the founder would like to receive an insight about the valuation of their business. The study will cover the business model of PT HIJ, startup ecosystem, analysis of the business environment and evaluation of valuation method. Based on the study, PT HIJ has a solid business model to grow its business. The trend of digitalization, government support and rising health awareness will benefit the company as one of the new startups itself. Also include in this study is valuation process performed using discounted cash flow method, comparable method and scorecard method. It can be concluded from the three techniques, the valuation resulting in an enterprise value ranging up to IDR 470 million, with the median of valuation at IDR 262 million.