Creating And Maintaining Value In A Startup

Startup companies often struggle to determine valuation in the context of an acquisition or other significant transaction. While it is possible to peg enterprise value by seeking a qualified valuation or by hiring consultants, those methods are not always indicative of value as viewed through the prism of an acquirer or transaction partner. Large deals between large companies typically are priced to market; whereas deals involving smaller companies, especially when the counterparty is much larger, are priced to the value proposition. If that's true, then how should smaller companies think about their value proposition when typically they do not have sales revenue or products in the marketplace?