Bond & Pecaro Writes the Book on Valuing Internet Companies; CyberValuation 2001 Examines 1,327 Recent Transactions.Business Editors/Hi-Tech Writers WASHINGTON--(BUSINESS WIRE)--March 6, 2001 Bond & Pecaro, Inc., a Washington, DC based consulting firm Noun 1. consulting firm - a firm of experts providing professional advice to an organization for a fee consulting company business firm, firm, house - the members of a business organization that owns or operates one or more establishments; "he worked for a , has released its third annual in-depth study on the valuation of Internet companies. Since the inception of the Internet economy, buyers, investors, and entrepreneurs have struggled to keep ahead of changing valuations of Internet companies. Which sectors are consolidating? Which are expanding? Are multi-billion dollar valuations justified? Can unprofitable companies sustain their valuations? These questions saw some unsettling un·set·tle v. un·set·tled, un·set·tling, un·set·tles v.tr. 1. To displace from a settled condition; disrupt. 2. To make uneasy; disturb. v.intr. answers in 2000. CyberValuation 2001 investigates Internet company merger, acquisition, and IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. activity in the year 2000 to provide a roadmap of trends and valuation benchmarks. "Valuations have become more and more important as the financial markets and investors have realized that profitability and cash flow are the real drivers of value and not the overexuberance and hype we experienced last year," says Bond & Pecaro principle, Tim Pecaro. "Internet companies are being forced to reexamine re·ex·am·ine also re-ex·am·ine tr.v. re·ex·am·ined, re·ex·am·in·ing, re·ex·am·ines 1. To examine again or anew; review. 2. Law To question (a witness) again after cross-examination. their business plans to identify a road to profitability. Cash burn rates are the focus of Wall Street and until Internet companies can prove they are making significant progress toward real cash flow they will be punished with low valuations and the inability to raise additional capital. This lack of funding threatens the very existence of many Internet companies as we head into 2001." CyberValuation 2001 examines five industry segments, including Internet Service Providers Internet service provider (ISP) Company that provides Internet connections and services to individuals and organizations. For a monthly fee, ISPs provide computer users with a connection to their site (see data transmission), as well as a log-in name and password. (ISPs), portals, business-to-business (B2B (Business to Business) Refers to one business communicating with or selling to another. See B2B e-commerce, B2C and B2G. B2B - business to business ), business-to-consumer (B2C (Business to Consumer) Refers to a business communicating with or selling to an individual rather than a company. See B2B. ), and Internet infrastructure. The study provides trailing year revenue and unique monthly visitor valuation multiples, as well as sector trend analysis. The report also profiles individual transaction details such as purchase price, offering proceeds, market capitalization Market Capitalization A measure of a public company's size. Market capitalization is the total dollar value of all outstanding shares. It's calculated by multiplying the number of shares times the current market price. This term is often referred to as market cap. , revenues, and unique monthly visitors, where available. Company principal Jeff Anderson emphasizes, "Internet companies were reminded about the importance of free-cash flow during 2000. Capital dried up because the prospects for Internet company profitability was not evident. Companies are now doing all they can to propel their businesses to profitability as soon as possible." About Bond & Pecaro, Inc. Bond & Pecaro, Inc. provides valuation and financial consulting services to major players in the Internet, broadcasting, cable television, wireless, and publishing industries. Bond & Pecaro's professionals have appraised over 4,000 media and technology concerns. Firm members have extensive experience in market research, valuation-related tax matters, financial and economic analysis, and litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. support. For additional information about Bond & Pecaro, Inc., or to place an order for CyberValuation 2001 ($695), call 202-775-8870 or visit www.cybervaluation.com or www.bondpecaro.com. Any communications regarding the book or its contents may be directed to Jeff Anderson at jeffanderson@bondpecaro.com. |
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