By Michael S. Melfi JD, MBA
They often say how much something is worth is based on what someone is willing to pay for it - the ol’ supply and demand rules. However when dealing with inventions and emerging brands, it is important to develop a valuation that is based on industry standards, investor criteria and reliable financial data. A valuation is a financial number generated to various accounting and financial models to create a representative financial value of the idea, invention or business. The reason why this is so important is that any type of funding for lending will typically take into account this financial number. Plus, it is necessary that any inventor or business owner at least understand the value of their business. The tricky part is that many people often overvalue what they have worked on or the amount of sweat equity they have put into a business.