Quoted from PinballCompany:I have already been introduced to many investors who can contribute ideas and serve on our board. It's tough running a business with the two executives. There is another benefit that we have not discussed, but here you go. We have been approached by a few individuals and companies who expressed interest in buying our company or merging. However, valuing a small business in this niche industry is very difficult because there are no comparable sales. Best way to do it is to use sales, earnings, or cash flow multiples. This offering will establish a baseline valuation for any suitors in the future. Hard to put a pricetag on the talent and relationships were are getting and be able to have this valuation established.
As a potential investor the only valuation I would be interested in, is the straight forward P/E ratio.
For a company trading over 10 years, P/E ratio is the main method I would use.
Other valuations are typically use for blue sky investments, tech companies, where potential profits can be huge ( as can the losses ).