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
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
Financial Planning is a long term process through which you can achieve your financial goals. We at Financial Hospital bring to you a presentation to help you understand the basics of having a healthy and planned financial future.
In case you need to present economic status of your company then our content-ready financial statement analysis PowerPoint Presentation is ideal for you. This income statement PPT presentation having multiple slides such as financial projections, key financial ratios, liquidity ratios, cash flow statement KPIs, profitability ratios, activity ratios, solvency ratios, income statement overview and funding updates etc. This cash flow assessment PowerPoint template goes well with topics like profitability analysis, business impact analysis, financial health, and income statement, balance sheet, statement of cash flow, business performance analysis, financial health, and future prospects of an organization, project future performance, economic analysis, company analysis, business valuation, fundamental analysis. For successful business presentation, PowerPoint background is as important as the content in the slides. Our accounting statement PPT slide provides you both content rich as well as professional slides. Download our financial statement analysis presentation slides to project your business future performance. Elucidate on your ideas with our Financial Statement Analysis PowerPoint Presentation Slides. Drive your team to excellence.
time value of money
,
concept of time value of money
,
significance of time value of money
,
present value vs future value
,
solve for the present value
,
simple vs compound interest rate
,
nominal vs effective annual interest rates
,
future value of a lump sum
,
solve for the future value
,
present value of a lump sum
,
types of annuity
,
future value of an annuity
Financial ratios and their use in understanding Financial StatementsPranav Dedhia
An introduction and in-depth understanding on the importance of Financial ratios in understanding financial statements of business entities along with relevant examples
Financial Planning - Helping You Sail Successfully into the FutureFrank Wiginton
This is a short e-book I wrote to help dispel some of the myths about financial planning and educate the public on what financial planning really is and what it can do and provide.
From simple corporate bonds, and government securities to derivatives, credit default swaps, and mortgaged back securities this seminar from Saunders Learning Group covers all of the details of fixed income investing. Contact at us 316-680-6482 or floyd@floydsaunders.com to arrange a seminar today.
A profit and loss statement is a financial statement that reports on revenue, operating costs and expenses incurred by an entity within a nominated period of time.
Calculate financial projections for investment presentationsThe Capital Network
www.TheCapitalNetwork.org
Join our experts in an overview discussion of financial projections. Learn the key metrics that will get investors to notice you, as well as those that will get you rejected. If you have no idea where to begin with your financial projections, this program is for you.
Experts -
Heather Onstott, Launch Capital
Heather Shanahan, Venture Advisors
Financial Planning is a long term process through which you can achieve your financial goals. We at Financial Hospital bring to you a presentation to help you understand the basics of having a healthy and planned financial future.
In case you need to present economic status of your company then our content-ready financial statement analysis PowerPoint Presentation is ideal for you. This income statement PPT presentation having multiple slides such as financial projections, key financial ratios, liquidity ratios, cash flow statement KPIs, profitability ratios, activity ratios, solvency ratios, income statement overview and funding updates etc. This cash flow assessment PowerPoint template goes well with topics like profitability analysis, business impact analysis, financial health, and income statement, balance sheet, statement of cash flow, business performance analysis, financial health, and future prospects of an organization, project future performance, economic analysis, company analysis, business valuation, fundamental analysis. For successful business presentation, PowerPoint background is as important as the content in the slides. Our accounting statement PPT slide provides you both content rich as well as professional slides. Download our financial statement analysis presentation slides to project your business future performance. Elucidate on your ideas with our Financial Statement Analysis PowerPoint Presentation Slides. Drive your team to excellence.
time value of money
,
concept of time value of money
,
significance of time value of money
,
present value vs future value
,
solve for the present value
,
simple vs compound interest rate
,
nominal vs effective annual interest rates
,
future value of a lump sum
,
solve for the future value
,
present value of a lump sum
,
types of annuity
,
future value of an annuity
Financial ratios and their use in understanding Financial StatementsPranav Dedhia
An introduction and in-depth understanding on the importance of Financial ratios in understanding financial statements of business entities along with relevant examples
Financial Planning - Helping You Sail Successfully into the FutureFrank Wiginton
This is a short e-book I wrote to help dispel some of the myths about financial planning and educate the public on what financial planning really is and what it can do and provide.
From simple corporate bonds, and government securities to derivatives, credit default swaps, and mortgaged back securities this seminar from Saunders Learning Group covers all of the details of fixed income investing. Contact at us 316-680-6482 or floyd@floydsaunders.com to arrange a seminar today.
A profit and loss statement is a financial statement that reports on revenue, operating costs and expenses incurred by an entity within a nominated period of time.
Calculate financial projections for investment presentationsThe Capital Network
www.TheCapitalNetwork.org
Join our experts in an overview discussion of financial projections. Learn the key metrics that will get investors to notice you, as well as those that will get you rejected. If you have no idea where to begin with your financial projections, this program is for you.
Experts -
Heather Onstott, Launch Capital
Heather Shanahan, Venture Advisors
Part of the all day Venture Fast Track: http://www.thecapitalnetwork.org/programs/venture-fast-track/
Financial Projections
Join our experts in an overview discussion of financial projections. Learn the key metrics that will get investors to notice you, as well as those that will get you rejected. If you have no idea where to begin with your financial projections, this program is for you.
Experts:
- Alicia Amaral – Scalar Analytics
-Heather Onstott – LaunchCapital
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.
9.14 TCN 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.
Calculate Financial Projections for Investment PresentationsThe Capital Network
Join our experts in an overview discussion of financial projections. Learn the key metrics that will get investors to notice you, as well as those that will get you rejected. If you have no idea where to begin with your financial projections, this program is for you.
Calculate Financial Projections for Investment PresentationsThe Capital Network
Join our experts in an overview discussion of financial projections. Learn the key metrics that will get investors to notice you, as well as those that will get you rejected. If you have no idea where to begin with your financial projections, this program is for you.
Experts -
Heather Onstott, Launch Capital
Heather Shanahan, Venture Advisors
Startup Economics, Finance and Accounting 101Dan Nelson
A quick look into some of the necessary finance, accounting and economic needs for early stage startups. It is a short survey, and there is more to come on this really interesting space.
For more information, please contact Dan@techbrainstorm.com
Stepping into a role which requires business finance knowledge? Here is a short guide offering advice, tools, and expertise that you will need to equip yourself with to be successful. Check out our Diploma in Business Finance for more.
The KPI - Cash Flow Modeling and Projections (Series: MBA Boot Camp 2020) Financial Poise
You can chase a lot of financial measures of your business, but nothing stacks up to cash flow. Like a boat captain on a rough sea, being able to see what is coming at you financially is absolutely invaluable. Cash flow models are the absolute go-to tool for reviewing companies in distress, yet they are also invaluable to venture capitalist who must manage long range investments as well as fast growth. This webinar discusses the basic components of a cash flow model, why it is weekly and not monthly and why 13 weeks is the usual length. This webinar also discusses what type of data is best for making an efficient and practical cash flow model, as well as best practices for reporting and pitfalls associated with modeling and balance roll forwards.
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.
The world of search engine optimization (SEO) is buzzing with discussions after Google confirmed that around 2,500 leaked internal documents related to its Search feature are indeed authentic. The revelation has sparked significant concerns within the SEO community. The leaked documents were initially reported by SEO experts Rand Fishkin and Mike King, igniting widespread analysis and discourse. For More Info:- https://news.arihantwebtech.com/search-disrupted-googles-leaked-documents-rock-the-seo-world/
RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...BBPMedia1
Marvin neemt je in deze presentatie mee in de voordelen van non-endemic advertising op retail media netwerken. Hij brengt ook de uitdagingen in beeld die de markt op dit moment heeft op het gebied van retail media voor niet-leveranciers.
Retail media wordt gezien als het nieuwe advertising-medium en ook mediabureaus richten massaal retail media-afdelingen op. Merken die niet in de betreffende winkel liggen staan ook nog niet in de rij om op de retail media netwerken te adverteren. Marvin belicht de uitdagingen die er zijn om echt aansluiting te vinden op die markt van non-endemic advertising.
Affordable Stationery Printing Services in Jaipur | Navpack n PrintNavpack & Print
Looking for professional printing services in Jaipur? Navpack n Print offers high-quality and affordable stationery printing for all your business needs. Stand out with custom stationery designs and fast turnaround times. Contact us today for a quote!
Enterprise Excellence is Inclusive Excellence.pdfKaiNexus
Enterprise excellence and inclusive excellence are closely linked, and real-world challenges have shown that both are essential to the success of any organization. To achieve enterprise excellence, organizations must focus on improving their operations and processes while creating an inclusive environment that engages everyone. In this interactive session, the facilitator will highlight commonly established business practices and how they limit our ability to engage everyone every day. More importantly, though, participants will likely gain increased awareness of what we can do differently to maximize enterprise excellence through deliberate inclusion.
What is Enterprise Excellence?
Enterprise Excellence is a holistic approach that's aimed at achieving world-class performance across all aspects of the organization.
What might I learn?
A way to engage all in creating Inclusive Excellence. Lessons from the US military and their parallels to the story of Harry Potter. How belt systems and CI teams can destroy inclusive practices. How leadership language invites people to the party. There are three things leaders can do to engage everyone every day: maximizing psychological safety to create environments where folks learn, contribute, and challenge the status quo.
Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
Dr. William Harvey is a seasoned Operations Leader with extensive experience in chemical processing, manufacturing, and operations management. At Michelman, he currently oversees multiple sites, leading teams in strategic planning and coaching/practicing continuous improvement. William is set to start his eighth year of teaching at the University of Cincinnati where he teaches marketing, finance, and management. William holds various certifications in change management, quality, leadership, operational excellence, team building, and DiSC, among others.
What is the TDS Return Filing Due Date for FY 2024-25.pdfseoforlegalpillers
It is crucial for the taxpayers to understand about the TDS Return Filing Due Date, so that they can fulfill your TDS obligations efficiently. Taxpayers can avoid penalties by sticking to the deadlines and by accurate filing of TDS. Timely filing of TDS will make sure about the availability of tax credits. You can also seek the professional guidance of experts like Legal Pillers for timely filing of the TDS Return.
Kseniya Leshchenko: Shared development support service model as the way to ma...Lviv Startup Club
Kseniya Leshchenko: Shared development support service model as the way to make small projects with small budgets profitable for the company (UA)
Kyiv PMDay 2024 Summer
Website – www.pmday.org
Youtube – https://www.youtube.com/startuplviv
FB – https://www.facebook.com/pmdayconference
Recruiting in the Digital Age: A Social Media MasterclassLuanWise
In this masterclass, presented at the Global HR Summit on 5th June 2024, Luan Wise explored the essential features of social media platforms that support talent acquisition, including LinkedIn, Facebook, Instagram, X (formerly Twitter) and TikTok.
LA HUG - Video Testimonials with Chynna Morgan - June 2024Lital Barkan
Have you ever heard that user-generated content or video testimonials can take your brand to the next level? We will explore how you can effectively use video testimonials to leverage and boost your sales, content strategy, and increase your CRM data.🤯
We will dig deeper into:
1. How to capture video testimonials that convert from your audience 🎥
2. How to leverage your testimonials to boost your sales 💲
3. How you can capture more CRM data to understand your audience better through video testimonials. 📊
Putting the SPARK into Virtual Training.pptxCynthia Clay
This 60-minute webinar, sponsored by Adobe, was delivered for the Training Mag Network. It explored the five elements of SPARK: Storytelling, Purpose, Action, Relationships, and Kudos. Knowing how to tell a well-structured story is key to building long-term memory. Stating a clear purpose that doesn't take away from the discovery learning process is critical. Ensuring that people move from theory to practical application is imperative. Creating strong social learning is the key to commitment and engagement. Validating and affirming participants' comments is the way to create a positive learning environment.
B2B payments are rapidly changing. Find out the 5 key questions you need to be asking yourself to be sure you are mastering B2B payments today. Learn more at www.BlueSnap.com.
Digital Transformation and IT Strategy Toolkit and TemplatesAurelien Domont, MBA
This Digital Transformation and IT Strategy Toolkit was created by ex-McKinsey, Deloitte and BCG Management Consultants, after more than 5,000 hours of work. It is considered the world's best & most comprehensive Digital Transformation and IT Strategy Toolkit. It includes all the Frameworks, Best Practices & Templates required to successfully undertake the Digital Transformation of your organization and define a robust IT Strategy.
Editable Toolkit to help you reuse our content: 700 Powerpoint slides | 35 Excel sheets | 84 minutes of Video training
This PowerPoint presentation is only a small preview of our Toolkits. For more details, visit www.domontconsulting.com
2. Heather
Onsto,
Today’s
Speakers
• Senior
Controller
Consultant,
Venture
Advisors
• CPA
• Prior
Controller,
Accoun>ng
Manager
at
several
area
startups/high
growth
companies
• BS,
UVM;
MSA/MBA
Northeastern
• Venture
Partner,
former
Director
of
Small
Business
with
LaunchCapital
• Interim
CEO
of
the
Nanny
Caddy,
a
LaunchCapital
porMolio
company
• Over
20
years
experience
in
small
business
finance
• BA,
Wofford
College;
MBA,
Dartmouth
Heather
Shanahan
3. Financial
Projec>ons:
WIFM?
Today’s
presenta>on
will
focus
on
the
how
and
why
of
building
and
pitching
financial
projec>ons
• How:
Crea>ng
financial
projec>ons
using
a
spreadsheet
and
some
common
accoun>ng
knowledge
shows
you
where
to
focus
your
resources
• Why:
Crea>ng
financial
projec>ons
shows
investors
that
you
have
carefully
considered
all
financial
implica>ons
4. Financial
Projec>ons:
3
Objec>ves
1. Force
discipline
and
objec>vity
through
crea>ng
a
methodical
approach
2. Demonstrate
thorough
understanding
of
your
company’s
business
model
3.
Provide
answers
to
“what
if?”
5. Building
Projec>ons:
Yeah,
but…
I’ve
heard
that
I
don’t
really
have
to
build
a
business
plan
with
financial
projec8ons
because
no
one
actually
reads
it…
• Business
plans
with
financial
projec>ons
are
necessary…
– Bo,oms-‐up
vs.
Top-‐down
– HINT:
You're
trying
to
talk
yourself
out
of
this!
• Financial
projec>ons
are
a
key
por>on
of
the
due
diligence
most
investors
perform
FOR
YOU
Investors
are
more
interested
in
the
assump1ons
made
when
building
financial
projec1ons,
not
the
exact
bo;om
line
6. Building
Projec>ons:
Pulp
fic>on?
Projec8ons
are
just
imaginary
anyway,
so
what
does
it
maCer
what
I
put
in?
A
common
mistake
is
to
have
illogical
numbers
in
the
projec>ons
– All
numbers
should
be
>ed
to
your
growth
assump>ons
• Ex
1:
If
sales
cycle
is
6
weeks,
should
there
be
sales
in
month
1?
• Ex
2:
If
business
is
seasonal,
should
growth
be
smooth
in
every
month?
– All
numbers
should
>e
with
a
rough
cash
flow
statement
• Either
a
separate
tab
or
at
the
bo,om
of
the
P&L
Projec1ons
that
have
not
been
planned
properly
make
investors
ques1on
your
understanding
of
your
business
model
7. Building
Projec>ons:
What
if…
Scenario
planning
is
just
worst-‐case
(out
of
business),
expected
(what
I
really
think
will
happen),
and
best-‐case
(Google
buys
us
for
a
bazillion
dollars),
right?
Focus
on
YOUR
key
success
metrics
to
drive
scenario
planning
– Sales
trac>on
– Gross
margins
– Incremental
headcount
Fundraise
amount
range
should
encompass
most
likely
scenarios
to
avoid
expensive
“Bridge”
or
“A-‐1”
rounds
8. More
on
Scenario
Planning…
Worst-‐case
scenarios
should
answer
“What
happens
if
there
is
no
outside
capital?”
– if
the
answer
isn't
'grow
slower',
is
this
a
pipe
dream?
Best-‐case
scenarios
should
answer
“What
does
this
business
look
like
if
everything
goes
right?”
– if
the
answer
isn’t
a
huge
financial
win
for
your
investor,
is
this
a
pipe
dream?
Most-‐likely
scenarios
should
answer
“What
does
this
business
look
like
following
comparable
companies’
growth
paths?”
– if
the
answer
isn’t
able
to
be
funded
with
the
current
“ask”,
is
this
a
pipe
dream?
Goldilocks
got
it
right:
examine
all
op1ons!
9. Building
Projec>ons:
Common
Terms
• Revenue/Sales
• COGS
• Gross
Profit/Margin
• Opera>ng
expenses
• EBITDA
• Cash
flow
breakeven
• Working
capital
• Burn
rate
10. Building
Projec>ons:
How
it
works
• Fundamental
components
of
model:
• Profit
&
Loss
• Balance
Sheet
• Cash
Flow
• Above
schedules
should
be
presented
by
month
• Have
an
assump8ons
page:
this
allows
flexibility
–
change
assump>ons
for
different
growth
scenarios
• Assump>ons
are
the
backbone
of
your
projec>ons,
so
you
should
know
them
COLD
Excel
is
your
friend,
but
be
careful
with
cell
references
–
it’s
easy
to
make
a
mistake!
12. Projec>ons:
Start
with
Revenue
Take
a
“Bo,oms
Up”
approach
• Ex:
We
have
tracked
X
unique
visitors
to
our
website
and
with
an
industry
averages
2%
conversion
rate,
sales
will
be
Y.
• Ex:
Survey
revealed
customers
are
willing
to
pay
$X
for
a
product
with
Y
features.
• Ex:
Q4
sales
were
$X.
With
a
customer
acquisi>on
cost
of
$Y,
we
expect
a
20%
growth
rate
as
a
result
of
marke>ng
efforts
• All
revenue
projec>ons
must
be
backed
up
with
a
sales
plan
Econ
101:
revenue
=
price
*
volume.
Knowing
which
element
is
driving
your
company’s
revenue
is
a
key
metric.
13. Include
details
of
relevant
expenses/ac>vi>es
related
to:
Selling
Marke>ng
Engineering
&
Development
COGS
General
&
Administra>ve
Determine
headcount
first
then
build
expenses
around
that
Projec>ons:
Add
in
expenses
14. Projec>ons:
Add
in
expenses
• Payroll
expenses
– Salaries
and
payroll
taxes
– Other
compensa>on
(bonuses,
commission)
– Fringe
benefits
– Variable
expenses
(T&E’s)
• Legal
and
Accoun>ng
• Insurance
15. Projec>ons:
Other
considera>ons
• You'll
need
space
one
day
that
isn't
free
• It
is
illegal
to
hire
someone
and
not
pay
them
• Equity
+
cash
=
total
compensa>on
• As
equity
values
increase,
cash
compensa>on
should
increase
as
the
less
expensive
long-‐run
pay
op>on
(this
means
you
are
WINNING!)
• Research
how
much
things
cost
–
don’t
guess!
• Call
your
iden>fied
suppliers
for
costs,
terms
of
materials
and
development
costs
16. Projec>ons:
final
checks
• Look
for
gradual
(realis>c)
P&L
improvement
over
>me
• EBITDA
excludes
expenses
that
are
not
core
to
a
company’s
opera>ons;
allows
for
comparisons
without
regard
to
capital
structure.
• EBITDA
measures
the
progression
of
the
business
but
cash
flow
is
ul>mately
what
the
investors
look
for
• Consider
reasonableness
of
when
you
get
to
cash
flow
breakeven
and
the
total
cash
you
are
asking
for.
Does
it
make
sense?
17. Pitching
projec>ons:
What’s
the
“ask”?
Financial
projec>ons
need
to
>e
to
the
amount
of
the
raise
– Fundraising
takes
>me,
so
12-‐18
months
of
cash
per
raise
– Iden>fy
milestones
to
be
hit
and
cost
of
each
one
– The
sum
of
those
milestone
costs
is
the
raise
amount
– The
"cushion"
in
the
raise
is
not
X%,
it's
the
cost
difference
in
the
most
likely
scenarios
The
secret
to
life
is
“t”
– “t”
is
the
variable
for
“>me”
in
mathema>cal
equa>ons…
and
>me
in
projec>ons
is
everything
18. Pitching
Projec>ons:
Rookie
moves
– CTRL+C+P
en>re
excel
model
into
a
slide
– Using
anything
less
than
18-‐point
font
– Li,ering
clipart
from
1995…
or
2013
– Sta>ng
projec>ons
to
the
$.01
– Failing
to
summarize
projec>ons
– Using
ANY
of
the
following
phrases:
• “conserva>vely
es>mated…”
• “at
only
X%
of
the
market…”
• “with
no
compe>>on…”
– Forgexng
to
explain
what
the
amount
you
raise
achieves
– Relying
on
a
short-‐term
exit
at
a
high
mul>ple
19. Pitching
Projec>ons:
Expert
moves
• Know
your
audience
– The
earlier
you
are
in
the
development
of
your
business,
the
more
interested
in
your
assump>ons
the
investors
are…so
know
you’ll
be
discussing
them
in
detail.
Painstaking
detail.
• Be
rich,
not
king
– Does
a
new
hire
cut
costs
or
increase
revenue?
This
will
drive
the
>ming
of
a
new
hire.
• Don’t
forget
that
headcount
is
a
step-‐func>on
• What
is
B/E
expecta>on
for
a
new
hire?
– Good
metric
for
HC
is
sales/employee
–
these
numbers
are
benchmarked
and
available
with
some
research.