What price gets your YES VOTE?, page-87

Hi Again

just to go into a little more detail as to valuation of pipelines.

one of the latter projects i was involved in (one of the lead teams) the corporate world, was worth on the face of it $18m

to value the actual pipeline

Revenue estimate (known)
Less Expenditure (known)
Profit (known)
Quoted as percentage
Less the variables:
Chances of getting all/some of the work (less a %)
How long before commencement (increasing % over time)
Length of contract
Additional revenue derived from principal contract (add ons)
Customer retention

they just go on an on......and eventually it is based on most likely outcome, which is so subjective, however, these are how companies value themselves.

So yes pipeline is very important - now an expert needs to take all of these into consideration based upon best possible and verifiable information.