There are many valuation parameters that may be applicable, but which ones are most appropriate? Which valuation metrics are aligned with how investors or potential partners view the company? How might this change? Is it better to evaluate with comparative data or with our forecasts?

 

Solution

Valuation analysis is both a science and an art. There are many metrics to use, and no one single method is appropriate for all situations. The key success elements for the venture can point to what metrics carry more significance at different times. Investor focus can also change over time. Conveying different valuation parameters that are appropriate and directly address investor mindsets is critical. Understanding the why and how of different valuation conclusions will put you well ahead of investors and potential partners in assessing your company. 

Simple valuation analyses for your internal assessment may give you approximations, but by itself, it is not enough to justify your discussions with investors and potential partners. A deep dive into forecast modelling, comparative analysis, and strategic positioning can lead to a valuation analysis that can stand on its own. And it provides management with a deeper understanding of how the investment community perceives the company, industry and competitive landscape – this is invaluable when meeting with potential investors and partners.

 

What is the goal of your Valuation Analysis? To assess a purchase price of another entity, a sale price of your entity, a current value for raising funds, a future value to asses a funding strategy over time? Assessing which operating strategy may lead to more/less favorable future valuation for the enterprise?

We address your valuation needs with objectivity and provide the justification for the valuation analyses. Our use of fundamental and transaction databases provides a range of data for assessing an appropriate valuation. Our analysis is objective (the science) and insightful (the art) in defining the appropriate metrics, methodologies, and the evolving environment to describe a current valuation and a future valuation range over time.

When assessing different strategic alternatives, an objective valuation analysis from an investor’s mindset can assist in determining your strategic direction.

 

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