ES Interview With Mr. Aruna Perera, Director in Valuation and Corporate Finance Services Division, PwC

Session on start-up valuation organized by Entrepreneurship Society of University of Moratuwa was held on 7th November 2017 in University Premises. Startup valuation is not any neglect-able topic for an entrepreneur because of the adverse risk and often less or no revenues, result from inaccurate valuations. This is an exclusive interview we had with our resource person, Mr. Aruna Perera.

Mr. Aruna Perera is currently performing as the Director in Valuation and Corporate Finance Services Division, PwC. He is also a holder of CFA and ACA and earned his first degree from University of Sri Jayawardenapura in Accountancy. Upon completing his degree, he entered the University of Leicester and completed his Master’s in Business Administration.

How far valuation is important for an entrepreneur and an enterprise?
“We create business or build a product or service to get a financial benefit out of it. For entrepreneurs to get a proper value for the business that they build, they need to understand the real value of it. That will be the purpose of this session and to discuss various multiple startup valuing methods. This will support anyone to deduce the real value out of what they are doing.”

Do entrepreneurs need good financial knowledge?
“It is always good to have some idea yet it is not a must. Then again you need to understand where the value comes from? What is the unique selling proposition? And what is the value of your idea which should not be easily imitable? You can get it done through a patent or from your knowledge. However, your ides is the most important.”

Where does this lead us?
“It is very difficult to do an accurate valuation for any startup in particular because it is prototype or an abstract idea in your mind. Even when the company has not yet evolved fully, having those constraints still it is worthy to do the valuation and have a better idea. Always try to keep some indicative value.”

What is the current trend in Sri Lanka towards enterprising?
“I believe this is our future. This is where PwC comes to play, helping startups. We have sponsored Slush and many other competitions. In my opinion, new businesses are consisted of few thinkers who design the prototype of a product or a service and a set of coordinators who make it realized by different resource providers. Startups are our future. Therefore it is always brings me pleasure in being a part of this space.

As a product of a state university, what is your message to fellow undergraduates?
“You need to read a lot, need not be just books; it can be newspapers or blogs. You need to understand what you read and various applications of it. Travel and keep researching. Try to speak to people from various disciplines, and please do make mistakes. Going forward you will need technical and also managerial or business knowledge. Finally, you will need to come up with a comprehensive solution.”

We are truly privileged to have this short, yet very informative discussion with Mr. Aruna Perera. We, the Entrepreneurship Society of University of Moratuwa wish Mr. Aruna Perera, a successful time ahead in bringing future startups to life.

Article By : Chinthani Kumaradasa
Interviewed By: Kethaka Galappaththi

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(https://mora-ventures.com/)

10/11/2017