Technology valuation goes beyond revenue multiples. Here's the engineering-adjusted framework.
Standard valuation ignores engineering health. Adjust using: Technical Debt Discount (estimated remediation cost subtracted from enterprise value), Key Person Risk Premium (retention cost × departure probability), Architecture Scalability Factor (cost to scale 10x).
A company valued at $50M might have $5M in tech debt, $2M in key person risk, and $3M in scalability costs. Adjusted value: $40M.
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This article expands on ideas from my published work in CIO.com, Built In, Mind the Product, and HackerNoon. View published articles →
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