409A & CSOP VALUATION
WHY DO YOU NEED A PRE-MONEY VALUATION?
KNOW WHERE YOU STAND &
DON'T UNDERCUT YOURSELF
As an entrepreneur, you’ve put everything you have into your company. You’ve poured your blood, sweat, and tears into making it a success. But when it comes to figuring out how much your company is worth, you might be at a loss.
If you’re looking for external investors or considering retiring and selling your company, it’s essential to have a clear understanding of its value. Without this knowledge, you might have unrealistic expectations that could lead to disappointment when it comes time to negotiate a deal.
That’s where a pre-money valuation report can help. An external valuation provides an unbiased assessment of your company’s worth, giving you the information you need to make informed decisions about its future.
Don’t leave your company’s valuation to chance. Get a pre-money valuation report and know exactly what your company is worth – so you can make the best decisions for your business and your future.
SOME OF THE FOUNDERS WHO CHOSE US
SOME OF THE COMPANIES WE'VE VALUED
REQUEST A PRE-MONEY VALUATION
WHEN TO USE A THIRD PARTY VALUATION
DISCOVER IT NOW!
There are several situations in which an entrepreneur might want to consider using a third party pre-money valuation:
If you’re looking to bring on outside investors, a pre-money valuation can help you negotiate the best deal possible. It provides a clear understanding of your company’s value, which you can use to set a fair price for your equity and a third-party valuation may be a good starting point for your negotiations.
If you’re thinking about retiring or selling your company, a pre-money valuation can help you determine its fair market value. This will ensure that you get the best price possible when the time comes to make a deal.
If you’re considering issuing equity to employees as part of their compensation, a pre-money valuation can help you determine the fair value of the equity you’re offering (this is the right kind of valuation for you!!)
If there is disagreement within the company about its value, a pre-money valuation can provide an unbiased assessment to help resolve the issue. Please note that this report is not audited and the final result is heavily dependant on the quality of your inputs, and therefore its assumptions might be heavily challenged by your counterpart. If you need a pre-money valuation to use in court, or in a highly challenging environment, please reach out to us in order to receive a dedicated quote
Overall, a pre-money valuation can be a useful tool for entrepreneurs in a variety of situations where an accurate understanding of their company’s value is needed.
CHECK OUT OUR METHODOLOGIES
Our pre-money methodology is the result of the weighted average of different valuation systems. The use of several methods is a best practice in company valuation, as looking at the business from different perspectives results in a more comprehensive and reliable view.
HOW DOES IT LOOK LIKE?
We will get to know you and your business, and we will chat to see if it’s the right time for you to order our pre-money valuation.
You will have additional details on our methodologies and ask us any question.
Yes it is 🙂
We’ll get in contact with you and set up a call. We’ll need to better understand your business and its stage of development.
Depending on the complexity of your company and business model, we need 1 to 2 weeks to complete the valuation (assuming we have received all the info we need)
We will need some qualitative information and some quantitative data. Generally we want a business plan, or your company’s projections for the next 3-5 years, as well as many other details. We’ll ask you to answer a number of questions and fill out a questionnaire: you can download our qualitative questionnaire here.
We use 2 qualitative methods and 3 quantitative ones. The answers you provide to the questionnaire will influence both the weights we apply to each method as well as the valuation of the qualitative methods.
We do take this into account, and this information will be displayed in the report, but it will not impact our quantitative analysis.
While you are definitely part of the process and the answers to our questions will greatly influence the outcome of the valuation, we will value the company independently and you have no say on the final outcome.
We use different valuation techniques in order to assess different companies at different development stages, but also in order to maximise accuracy. All methods are showcased in our report in order to communicate the different values that different methods yield.
This process heavily relies on the truthfulness of the information you provide us. We strongly discourage sending us incomplete, misleading or false information, as this will result in an unreliable valuation (and will probably backfire in your negotiations).
Any valuation indicates the fair value of a company (or any other asset) as the price that would be received to sell it in an orderly transaction between market participants. This is therefore a general indication and doesn’t take into account specific interests of the parties that will be actually involved in the transaction.
In other words: take it as starting point. The real value of your company will be determined when you will shake hands with the investors.
Short answer: no…
Longer answer: This valuation report doesn’t replace Due Diligence. Any investor willing to invest, or banker willing to lend to a company, should make their own assessment, and be responsible for their own decisions. At the same time this pre-money valuation report is tailored to early stage companies seeking investments. If you are a fund manager and want to value the companies in your portfolio reach out to us for a dedicated quote.
Throughout the years, we have developed a methodology that is particularly effective for early-stage valuations.
While our techniques cover the whole lifecycle of a company, from pre-seed to IPO, there are only a handful of independent companies that specialise in early-stage valuations.