Financial Valuation

Importance of Financial Valuation

Many activities that a company may engage in will require estimating the company’s value. Be it acquiring funding, executing an IPO or attracting an acquirer, overcoming the challenge of financial valuation is often integral in the company’s success. Too high a valuation and investors will flee. Too low a valuation and the company ends up giving away too much.

For large companies with a long track-record, this is a surmountable task given some financial know-how. However, early-stage companies are notoriously difficult to value accurately, particularly since the company may be several years from entering the market.

Complexity of Valuation

The financial model provides the link between the company’s operations and its valuation. While models may differ in scope and depth, their purpose is to capture how the business creates value and to tell a credible story about what the company is and what it will become. This then allows the company to make strategic decisions on issues such as how much funding to raise and crucially: at what price.

Creating an accurate financial model requires someone with relevant industry experience, corporate finance experience and the analytical mindset to make realistic assumptions and accurately model the business activities.

Through its experience & know-how of Tech-driven companies, especially in field of Medtech, Biotech, Digital Health & Software, we use financial models to help tech start-ups accurately and realistically value their business at early-stages of development, to enable them to attract investors without giving away more than necessary.

Process & Deliverables

The process begins with an initial 30-min free consulting session to get to know you and understand your business. Upon the agreement of both parties, you then provide a pitch-deck, teaser and/or other relevant documents, after which we produce the valuation. Turnover time from the initial meeting is approximately two-weeks. The pricing varies depending on the current growth stage of your start-up. Get in touch for a personalized offer.

The end result of a financial valuation is a document with the following contents:

• Financial Valuation: A document with a summary of financial models used to value your business

• Strategy on Fundraising: Recommended size of the round, valuation, and key terms