We also provide services in the following areas:
EARLY STAGE COMPANIES
Valuation difficult, but very important:
- Initial basis for attracting capital;
- Benchmark for share value: attract,
compensate executives
and provide basis for warrant/option value; Our experience
with intellectual property/technology valuation facilitates
assessment of novel concept companies;
- Introduction to VCs;
- Between-round interim assessment;
creating a credible value
benchmark can be critical;
- Frequent valuations over a period
of months can mark the
incremental value of landing contracts, executives, board
members: each significant event has a measurable impact
on value;
- Having paid close attention to value
in early stages creates
credibility with investors;
- We offer flexible fee arrangement:
partial payment in
equity considered.
- We will produce business plans; proforma
financials.
Important Definition:
Premoney Valuation: The Post-Money valuation of a company
at a financing round minus the amount raised at that round.
Example: A Post-Money valuation of $10 million
after raising $3 million implies a premoney valuation of $7 million.
INDUSTRY
STUDIES
- Composite financial statistics;
- Valuation multiples that make sense,
in contrast to material
on the popular web sites;
- Metrics and benchmarks tailored to
your niche;
- Narrative assessment of industry trends.
COMPETITIVE
ANALYSIS /
CORPORATE
INTELLIGENCE
- We will tell you who your competitors
actually are, not just
who you think they are.
- Who actually competes in your niche?
- Have these companies been expanding,
contracting, taking
market share, or heading in a different direction?
- Which of these competitors would
be suitable for some type
of business combination, whether purchase, sale, joint
venture, or other?
- You tell us what questions you need
to have answered.
TECHNOLOGY
VALUATION ANALYSIS
- What is the competitive advantage
of your new technology?
- What is it worth to a joint venture/strategic
alliance partner
in real dollars and cents?
- We will prepare a document quantifying
its value in several
detailed, plausible cash flow scenarios. Such a document can
be the basis for concrete discussions with a potential partner,
enabling you to negotiate from strength, not from pie-in-the-sky
wishful thinking.
- We will present a range of values
for your technology under a
set of well-specified parameters.
- Such a document can also be a useful
adjunct to a proposal
to venture capitalists.
- Sample document available upon
request.
LITIGATION
SUPPORT /
DISPUTE
ANALYSIS
- Intellectual Property
- Damages/Breach of Contract
- Business Interruption/Impairment
- Business Dissolutions
- Dissenting minority shareholders
- Loss of business/Damage estimation
FAIRNESS OPINIONS
A fairness
opinion is a statement from a financial expert that a transaction
is "fair from a financial point of view" to certain parties at interest. In
theory,
such opinions should protect minority shareholders who are diffuse and
cannot have a direct voice in transactions.
The need for a fairness
opinion arises where actual or potential conflicts of
interest exist among parties involved in a transaction. A fairness opinion
attempts to provide a posture maintaining arm’s length standards where they
do not otherwise exist.
Commentary by the SEC: Office of the
Chief Accountant
Revised Rules of Auditor Independence
"An accountant is not independent
when the accountant:
- has a mutual or conflicting interest
with the audit client;
- audits his or her own firm's work;
- functions as management or an employee
of the audit client; or
- acts as an advocate for the audit
client".
The new rule bans all valuation and
appraisal services [by auditors].
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© 2008 Value Concepts LLC. All Rights Reserved.
Philadelphia Office: 8787 Duveen
Drive, Wyndmoor, PA 19038
215-836-0419
Connecticut Office: 12 Littlefield
Drive, Old Lyme, CT 06371
860-434-2721
