Companies looking to sell themselves, or acquire or merge with another company, need a firm grasp of their worth and the tools to defend that worth to their Board and to outside parties. I can assist a company in this position to develop those tools and construct a defensible valuation. The foundation of this process is the development of a solid Economic Model of the business that can drive a set of Financial Projections that are credible and defensible.
Once such a model has been constructed, it becomes the basis for a Valuation Analysis based on Discounted Cash Flow, Revenue Multiples, Earnings Multiples, and recent acquisition history. Many of these valuation techniques depend upon the identification of a set of comparable companies and research into their financial history and current valuation.
I can construct the necessary Economic Model to drive a set of Financial Projections and I can undertake the research to derive the set of comparable companies and their various valuation metrics. I can do this with considerably more accuracy at considerably less cost than an Investment Bank would charge, enabling my clients to provide this data to their Investment Banker and bear charges only for the actual transaction management, or to bypass such charges entirely and manage the transaction on their own.
The Financial Projections can also be used as the basis for 409A valuations to support the option strike price for current employee option grants.
For more information, see Financial Modeling.