Alicia Valuation Presentation 04-29-13
f you are a CEO or a CFO of a high growth startup, it is vital to understand how to value your company correctly.
Here is a quick list of questions this lunch will help you answer:
Do you offer or are you planning to offer your employees stock options? Do you know the difference between ISOs and non-ISOs? Do you understand the general valuation concepts and approaches that the IRS has outlined, especially as they apply to early-stage companies? Did you know that if you run afoul of the 409A rules, your employees could have an unpleasant tax surprise and that some of that responsibility could revert back to you as the employer? Do you know if and when you need to engage an outside expert to assist with a valuation?
www.thecapitalnetwork.org
This is a discussion of the methods and uses of business valuation techniques. This webinar was presented by Theresa Seidler-Shonat, a Business Valuation Specialist from Smith & Gesteland, a Madison, Wisconsin accounting and consulting firm.
The recent economic growth coupled with uncertainties has resulted in the stakeholder's curiosity and interest in Valuations of their respective investee Companies and also the estimated Valuations of the Targets available for Sale which has led to a greater demand for Business Valuation services.
Since as of now there are no Regulated standards for Valuation in India, numerous conceptual controversies still remain, even among the most prominent practitioners. With a view to give an overview of the Valuation concepts in general and the practical issues in particular, www.corporatevaluations.in, an online venture of Corporate Professionals Capital, SEBI Registered Merchant Banker has prepared this report on "Insight of Valuation". Hope you find it useful. Suggestions for improvement are invited @ info@corporatevaluations.in
The concept of the Security Market Line is very popular for portfolio management. It helps to derive the pricing of risky securities by plotting their expected returns.
To know more about it, click on the link given below:
https://efinancemanagement.com/investment-decisions/security-market-line
This is a discussion of the methods and uses of business valuation techniques. This webinar was presented by Theresa Seidler-Shonat, a Business Valuation Specialist from Smith & Gesteland, a Madison, Wisconsin accounting and consulting firm.
The recent economic growth coupled with uncertainties has resulted in the stakeholder's curiosity and interest in Valuations of their respective investee Companies and also the estimated Valuations of the Targets available for Sale which has led to a greater demand for Business Valuation services.
Since as of now there are no Regulated standards for Valuation in India, numerous conceptual controversies still remain, even among the most prominent practitioners. With a view to give an overview of the Valuation concepts in general and the practical issues in particular, www.corporatevaluations.in, an online venture of Corporate Professionals Capital, SEBI Registered Merchant Banker has prepared this report on "Insight of Valuation". Hope you find it useful. Suggestions for improvement are invited @ info@corporatevaluations.in
The concept of the Security Market Line is very popular for portfolio management. It helps to derive the pricing of risky securities by plotting their expected returns.
To know more about it, click on the link given below:
https://efinancemanagement.com/investment-decisions/security-market-line
Important issues relating to equity portfolio management. Active and passive management strategies are explained in brief along with the text book of Reilly and Brown.
Before going to market to sell your business, you or your executive team may want to obtain an independent appraisal. Likewise, prospective buyers may wish to obtain expert services to value an acquisition target or discrete portions of a target. This webinar provides a look into how valuation experts place a value on a going concern.
Part of the webinar series: Valuation 2021
by-group 9
For downloading this contact- bikashkumar.bk100@gmail.com
Prepared by Students of University of Rajshahi
Md. Imran Hossain
Rima Binte Rahamot
F.M. Alimuzzaman
Md.Sultan Mahmud
Md. Al-Amin
Robiul IsLAm
Tamanna Toma
Md. Junayed Hossain
Yousuf Chowdhury
Md. Roxy Hossain
Important issues relating to equity portfolio management. Active and passive management strategies are explained in brief along with the text book of Reilly and Brown.
Before going to market to sell your business, you or your executive team may want to obtain an independent appraisal. Likewise, prospective buyers may wish to obtain expert services to value an acquisition target or discrete portions of a target. This webinar provides a look into how valuation experts place a value on a going concern.
Part of the webinar series: Valuation 2021
by-group 9
For downloading this contact- bikashkumar.bk100@gmail.com
Prepared by Students of University of Rajshahi
Md. Imran Hossain
Rima Binte Rahamot
F.M. Alimuzzaman
Md.Sultan Mahmud
Md. Al-Amin
Robiul IsLAm
Tamanna Toma
Md. Junayed Hossain
Yousuf Chowdhury
Md. Roxy Hossain
Mr. Chander Sawhney, Partner & Head – Valuation & Deals, Corporate Professionals shared his thoughts as a guest Speaker on Relative Valuation - Techniques & Application at a Business Valuation Masterclass organised by VC Circle on 31st August, 2016.
Relative Valuation in which value of an asset or liability is done by comparing it to its Peers is pervasive and preferred for ascertaining Fair Value at a point of time as it reflects the market positioning of the Industry and Peers at that time. While Discounted Cash Flow (DCF) method is applied for arriving at Fundamental Valuation, most M&A transaction are based on Relative Valuation multiples (mostly Earnings based). The valuation ratio typically expresses the valuation as a function of a measure of Key Financial Metrics like PE, EV/EBITDA, EV/Sales or Book Value Multiple.
But before using a multiple, one should know the fundamentals determining the multiple and how changes impact it. Sanity check through use of fundamental valuation method like DCF is strongly recommended.
About Corporate Professionals Valuation Practice
Corporate Professionals Capital Pvt. Ltd. is a SEBI Registered (Cat-1) Merchant Banker and has a successful track record of providing a broad range of M&A and Transaction Advisory Services. Our Dedicated Team has more than 10 years of rich Valuation experience and we have executed more than 500 Corporate Valuations for clients of International Repute across different Context, Industries and Boundaries.
To know more about Our Valuation offerings and how we can help you, please visit us at www.corporatevaluations.in or download our Valuation profile @ http://www.corporatevaluations.in/VALUATION_PROFILE.pdf
Complete guide to Building an Acquistion Strategy and Valuation MethodologiesSTRATICX
DESCRIPTION
For a business any business looking to engage in acquisition activity it is critical to understand what your strategy is. Acquisition and investment is more than a financial exercise, there has to be a strategy intent as well.
This document is in three main sections to help formulating an acquisition strategy:
1. Identifying the Acquisition Target and Process
2. Diligencing the Target
3. Evaluating Other Strategic Considerations
Followed by a overview of valuation methodologies commonly used to value targets:
1. Public Market Comparables
2. Merger Market Comparables
3. DCF
4. Pro Forma
This powerpoint is designed to give a good foundations and building blocks for those interesting in learning more about the above techniques.
Paul Jacob Bins introducing DecomPartners at Offshore Decommissioning 2017 (S...Paul Jacob Bins
Although decommissioning activity is increasing (esp. in UK) multi-operator campaigns remain scarce. This despite the fact that campaigning P&A is widely seen as the key driver of cost-savings... DecomPartners has developed a new innovative financing solution that address the problems that Operators face, when contemplating to join decom-campaigns with their competition!
Early Valuation for Entrepreneurs by John ShumatePlatform Houston
Early Valuation for Entrepreneurs by John Shumate
John Shumate is CEO of ValuLogik and has focused his career on working closely with venture-backed companies. He has worked with hundreds of early- and growth-stage companies across many industries, many of them dealing with highly-technical products or business models. He believes strongly in the use of carefully-applied rigor to rationalize financial models, business plans, valuations, and other quantification tools. He has over a decade of financial experience, including buy-side and sell-side mergers and acquisitions; debt and equity capital raises; strategic consulting; complex financial modeling; business plan development; equity and derivative valuation; and venture incubation. John recently served as Vice President at Blue Equity, a growth-stage private equity firm, and Chief Financial Officer at BellaNovus, an early-stage medical device development company. He was a Senior Associate at bCatalyst, a business incubator and financial services provider to early-stage companies. He has also held analytical roles for Ethicon-Endo Surgery, a division of Johnson & Johnson, and Hilliard-Lyons, a regional brokerage house. John attended the Wharton School at the University of Pennsylvania, where he received a B.S. in Economics and dual concentrations in Finance and Management
Fairshare Model presentation for F50's SVE Demo Night @ Google Karl Sjogren
July 30, 2019 presentation by Karl Sjogren, author of the book "The Fairshare Model: A Performance-Based Capital Structure for Venture-Stage Initial Public Offerings."
Know Your Valuation for Equity Compensation (And Avoid the Perils of 409A)The Capital Network
If you are a CEO or a CFO of a high growth startup, it is vital to understand how to value your company correctly.
Here is a quick list of questions this lunch will help you answer:
Do you offer or are you planning to offer your employees stock options? Do you know the difference between ISOs and non-ISOs? Do you understand the general valuation concepts and approaches that the IRS has outlined, especially as they apply to early-stage companies? Did you know that if you run afoul of the 409A rules, your employees could have an unpleasant tax surprise and that some of that responsibility could revert back to you as the employer? Do you know if and when you need to engage an outside expert to assist with a valuation?
This is a limited seat lunch to teach issues of valuation for equity compensation and ask specific questions about your company.
Experts:
– Alicia Amaral, Scalar Analytics
– Scott Goodwin, Wolf & Company
This presentation "FEMA Valuation Aspects(FDI & ODI) and Registered Valuation" has been delivered by Mr. Chander Sawhney at East of Kailash Study Circle of ICSI on 22/11/2014.
As Associate Principal at The Monitor Group (now Monitor Deloitte) in China, part of my of my role was helping train 1st Year consultants. This is the summary presentation from a day long Masterclass in the commonly used techniques in assessing a firm's "true" value.
We originally created the 'OWN YOUR RAISE' Fellowship for Female Founders to solve some of the unique issues women founders face when it comes to raising money: lack of access to knowledge and investor networks and a need for greater confidence and executive leadership growth in scenarios where they are often the only woman in the room. But this program is now so much more: it's a safe space where Fellows can be inspired by and champion each other, connect and build on their leadership & fundraising strategy, and execute & celebrate their many milestones together.
The pressures of running a business while looking for funding causes many founders to underestimate the importance of creating a clear fundraising strategy. You don’t want to waste your time seeking capital without a clear timeline and plan. In this workshop, the experienced investors and entrepreneurs will guide you on how to best prepare, plan and execute a strategy that’s best suited to your business.
This workshop will also address the specifics of what it means to raise capital as a female founder and provide practical tips, checklists, templates and interactive exercises so you can start applying these to your company and Own Your Raise.
Key topics addressed include:
What’s the landscape of raising money for female founders?
What does raising capital mean for me and for my business?
Is my company ready to raise?
How much should I raise?
What’s the process and timeline of raising from angels/VCs?
How can I best prepare to raise my first outside capital?
How do I figure out and understand who the right investors are for my company?
How can I best align running my company and running a fundraising round?
What are the resources out there that can help me fundraise?
By attending this workshop, you will:
Understand what raising outside capital means for you and your business
Have a clear understanding of how to create a fundraising strategy that makes sense for you and for your company
Learn about resources to help you fundraise
Get checklists and templates for planning and executing your raise
Get access to the slides & recording
Please note that this is a woman-only event. Use of “women” & “female” is inclusive of and welcomes trans women, nonbinary folks, and anyone who identifies with womxnhood in any way that is significant to them.
Tcn investment & inclusion series - emerging fund managers opportunities and ...The Capital Network
Emerging Fund Managers, or those managers who generally have less than $100M under management, are managing fewer than three institutional funds, and focused on early or seed-stage ventures, have become one of the fastest-growing segments in the venture capital industry. Many of these managers come from diverse backgrounds and/or are interested in investing in diverse founders. Our conversation will highlight the opportunities and challenges faced by emerging fund managers as they aim to diversify the venture capital funding landscape.
Back in 2016, we created our 'OWN YOUR RAISE' program to solve some of the unique issues women founders face when it comes to raising money: lack of access to knowledge and investor networks and a need for greater confidence and executive leadership growth in scenarios where they are often the only woman in the room. We have created a safe space where fellows can be inspired by and champion each other, where they can connect and build on their leadership and fundraising strategy, and where they can ultimately OWN. THEIR. RAISE.
Crowdfunding has become an increasingly popular funding strategy for early stage entrepreneurs — but it’s not a guaranteed success. We’re partnering with IFundWomen, a crowdfunding platform for women-led businesses to bring you this workshop. Whether you are creating a campaign for funding or for market validation, we’ll help you create an enticing campaign that will resonate with your audience and provide your business with the capital it needs to keep growing. Our crowdfunding experts will walk you through practical ways to hone your pitch, map your network, strategically estimate your fundraising goal, market to your target audience, and design rewards that sell. We’ll also provide useful resources, playbooks, toolkits, etc that you will need to rock your crowdfunding campaign.
Cash flow is the lifeblood of a startup. Effective cash flow management is fundamental to a business’s success.
As a founder, understanding your cash position is super important and you must have a firm grasp of cash flow mechanics to keep your business operating smoothly. To help you stay on top of it, in this webinar, we’ll break down the basics of cash flow management and provide tips so you can guarantee a healthy cash flow for your business.
With a clear understanding of your company’s cash flow, you can get through downturns and be in a strong position to grow in a new post-COVID environment.
In 2016 we created the Fellowship For Female Founders, a 6 month+ program to support women from the New England area looking for their 1st outside capital to get the support they deserve.
This fellowship helps them Own Their Story, Own Their Numbers and Own Their Network so they can confidently OWN THEIR RAISE.
Tcn investment & inclusion panel - dei & vc firms- structural barriers to eq...The Capital Network
Recent conversations around DEI in VC firms have centered on diversifying portfolios and hiring. But what happens if the very organizational processes and governance of these firms are actively creating barriers to achieving DEI initiatives? In this conversation, we discuss Pledges, Riders, Board Placements and more to understand what works and doesn’t, and what VC firms can do differently to create structural change.
In 2016 we created the Fellowship For Female Founders, a 6 month+ program to support women from the New England area looking for their 1st outside capital to get the support they deserve.
This fellowship helps them Own Their Story, Own Their Numbers and Own Their Network so they can confidently OWN THEIR RAISE.
The Fellowship For Female Founders - Applications & What You Receive As A Fel...The Capital Network
In 2016 we created the Fellowship For Female Founders, a 6 month+ program to support women from the New England area looking for their 1st outside capital to get the support they deserve.
This fellowship helps them Own Their Story, Own Their Numbers and Own Their Network so they can confidently OWN THEIR RAISE.
The $2 trillion federal coronavirus relief package signed recently, officially known as the CARES Act, includes the nearly $350 Paycheck Protection Program to help small businesses affected by the Coronavirus Pandemic. The new loan program is designed to help small businesses with their payroll and other business operating expenses. The Small Business Administration (SBA) will forgive the portion of the loan proceeds that are used to cover the first eight weeks of payroll costs, rent, utilities, and mortgage interest.
The SBA and the Department of Treasury have released the information that will guide the programs. To help entrepreneurs better understand how can they benefit from the program, we created the webinar in partnership with the SBA, Cambridge Trust and the law firm Nutter to answer questions including:
Who are eligible for a Paycheck Protection Program loan?
How do businesses apply? What information is needed?
How much money can a business receive through the loan program?
When will the loans be available?
What’s the interest rate?
What does the payment schedule look like?
How does the Affiliation Rules affect VC-backed startup’s eligibility?
Can the loan eventually be forgiven? What’s the eligibility for loan forgiveness?
What if the PPP Loan does not cover a business’s needs? What are the other options under the CARES Act?
Unfamiliar with the SBIR program and don’t know where to start? Here are some tips from The Isis Group on how to prepare your company for your first SBIR/STTR submission.
You might be interested in getting your startup into an accelerator – and rest assured Boston has no shortage of options – but it’s hard to know exactly what the best options for your stage and industry are.
From business support, mentorship and desk space, to equity vs non-equity, marketing, and even prize money – accelerators offer a whole lot and can really help you develop your product, brand, and network.
Calculate Financial Projections for Investment PresentationsThe Capital Network
Financial Projections are key in all aspects of the fundraising process: Pitching, Valuation, Due Diligence, and in the long term planning of your company. Join our experts in an overview discussion of financial projections and learn the key metrics that will get investors to notice you, as well as those that will get you rejected. With the expert advice of serial Startup CFOs and VC Analysts we’ll walk you though the process of what you need to know. If you have no or little idea where to begin with your financial projections, this program is for you.
Understanding Angel & Venture Term Sheets: A Play In 3 Acts. An re-enactment of negotiations between entrepreneurs, engineers and investors. For early stage entrepreneurs and startups.
2. Today’s
Speakers
• Managing
Director,
Scalar
Analy8cs
• Visi8ng
Professor,
Clark
University
and
Tu@s
University
• CPA
and
CVA
• Prior
CFO
Scalar
Analy*cs
specializes
in
business
valua*ons
including
409A
valua*ons.
• CPA,
Wolf
&
Company
• Accoun8ng
and
audi8ng
• Leads
the
High
Tech
prac8ce
• BOD
and
program
chair
commiJee
at
TCN
Wolf
&
Company,
PC,
is
a
100
year
old
regional
firm
with
19
owners
and
185
professionals,
focused
on
CPA
core
competencies
with
a
dedicated
tech
services
team.
ScoJ
Goodwin
Alicia
Amaral
3. About
Scalar
Analy8cs
• Collabora8ve
approach
• 550
valua8ons
per
year
(50%
are
409A)
• Majority
of
clients
backed
by
venture
capital
firms
and
angel
groups
• Clients
in
virtually
every
industry
• Work
with
all
of
the
“big
4”
audit
firms
and
countless
regional
firms
5. Standard
of
Value
• Fair
Market
Value
• Rev.
Rule
59-‐60
“The
price
at
which
the
property
would
change
hands
between
a
willing
buyer
and
a
willing
seller,
neither
being
under
any
compulsion
to
buy
or
sell,
and
both
having
reasonable
knowledge
of
relevant
facts.”
• Important
because
this
does
not
assume
a
strategic
buyer.
• This
is
the
standard
for
409A
6. Standard
of
Value,
con’t
• Investment
Value
• “The
value
to
a
par8cular
investor
based
on
individual
investment
requirements
and
expecta8ons”
• Value
is
different
depending
on
synergies
• Applies
to
specific
buyer
rather
than
hypothe8cal
buyer
• 409A
≠
VC
or
angel
investment
7. Standard
of
Value,
con’t
• Intrinsic
Value
• Based
on
present
value
of
future
dividends
• Applies
to
public
companies
• Fair
Value
• SFAS
141
and
142
“The
amount
at
which
an
asset
(or
liability)
could
be
bought
or
sold
in
a
current
transac8on
between
willing
par8es.”
• May
include
synergies
9. 1.
Asset
Approach
• Applicable
only
for
companies
in
early
stage
(difficult
to
defend,
last
resort
if
there
are
no
other
data
points)
• The
Asset
Approach
establishes
value
based
on
the
cost
of
reproducing
or
replacing
the
property,
less
deprecia8on.
• Applied
to
specific
assets,
such
as
land
improvements,
special-‐purpose
buildings,
special
structures,
systems,
special
machinery
and
equipment,
and
certain
intangible
assets.
10. 2.
Market
Approach
• Based
on
the
assump8on
that
the
value
of
an
asset
(including
a
company)
is
equal
to
the
value
of
a
subs8tute
asset
with
the
same
characteris8cs.
• Infer
value
by
finding
similar
assets
that
have
been
sold
in
recent
transac8ons.
11. 2.
Market
Approach
a) Recent
securi8es
transac8ons
method
b) Comparable
(guideline)
public
company
method
c) Comparable
transac8on
method
d)
Industry-‐specific
mul8ples
12. 2.
Market
Approach
a) Recent
securi5es
transac5on
method.
Based
on
recent
transac8ons
of
company’s
securi8es
Ex:
preferred
stock
sold
to
angels.
Exhibit
B
(backsolve
method).
Uses
OPM
based
on
preferred
rights
b) Comparable
public
co.
M&A
data
in
company’s
industry.
See
page
20.
Compare
to
Salesforce,
etc.
Uses
revenue
mul8ples,
EBITDA
mul8ples,
etc
c) Comparable
transac5on
method.
See
pg
21.
Similar
to
b)
See
Exhibit
F.
Why
it’s
important
to
review
your
report.
d) Industry
specific
mul8ples
(N/A).
Ex:
headcount,
backlog,
revenue
per
employee,
#
of
customers,
#
of
users
13. 3.
Income
Approach
• Discounted
Cash
Flows
(DCF)
• Present
value
of
future
cash
flows
• Discount
rate
is
based
on
rela8ve
riskiness
of
investment
• See
page
51
for
required
rates
of
return
for
private
venture
backed
companies
14. Enterprise
Value
• Each
method
comes
up
with
different
value
of
the
enterprise
• Analyst
determines
which
are
appropriate
and
weights
them
to
come
up
with
es8mated
enterprise
value
• See
page
22
of
Venture
Co.
15. Alloca8on
Methods
• The
previous
methods
determine
an
enterprise
value
of
the
company
as
a
whole
• The
next
step
is
to
allocate
among
various
classes
of
equity
• Example
(page
22):
Enterprise
value
$48,153,573
Less
Debt
($1,750,000)
Equity
value
=
$46,403,573
16. Breakpoints
• Simply
means
“who
gets
what”
in
the
event
of
an
exit
• Remember
that
the
point
of
a
409A
is
to
value
common
stock
• Preferred
shareholders
get
paid
first
• Common
shareholders
get
what’s
le@
over
• Enterprise
value
is
the
value
today
• Exit
is
value
in
X#
of
years
17. Alloca8on
Methods
• Current
Value
Method
(“CVM”)
–
assumes
value
today
is
same
as
exit
value
– Appropriate
only
if
liquidity
value
is
known
as
in
a
pending
deal
• Probability
Weighted
Expected
Return
(“PWERM”)
–
weighted
average
of
various
scenarios
based
on
probability
(IPO,
sale,
bankruptcy)
– Probability
based
on
appraiser’s
judgment
• Op8on
Pricing
Method
(“OPM”)
–
same
logic
as
PWERM
but
considers
more
scenarios
– Probability
based
on
Black
Scholes
18. OPM
• In
the
event
of
an
exit,
preferred
gets
paid
first
• Common
only
gets
if
there’s
anything
le@
over
• Vola8lity
and
8me
to
liquidity
are
important
factors
in
determining
range
of
outcomes
• Greater
vola8lity
is
beJer
for
common
(lower
lows
but
who
cares
because
below
zero
is
same
as
zero)
• Longer
life
is
beJer
because
more
opportunity
to
grow
19. OPM
• See
Exhibit
M
Breakpoint
Analysis
• Common
stock
only
has
value
only
if
funds
available
exceed
liquida8on
preferences
of
preferred
• See
also
Capshare
Demo
Company
20. Discount
• Discount
for
lack
of
marketability
(DLOM)
25
–
45%
• Discount
for
Venture
Co.
=
35.7%
21. Valua8on
Summary
• Value
is
based
on
a
number
of
assump8ons
that
have
a
material
impact
on
the
result
– Projected
cash
flows
– WACC
– DLOM
– Comparable
companies
• Important
to
have
a
“DEFENDABLE
VALUE”
(IRS
and
auditors)
• Important
to
review
report
for
reasonableness
of
assump8ons.
You
know
your
business.