What are the underlying principles that you should be using in a negotiation? It doesn’t matter whether you’re the one looking to make the investments or the business looking to attract investors because these principles and techniques will always work – whichever side of the negotiating table you happen to be sat on.
THE IMPORTANCE OF BEING EARNEST
Environmental, Social, and Governance (ESG) criteria are an almost mandatory aspect of today’s investment markets. But is this a fad?
LEHMAN FORMULA
So, let’s address the elephant in the room first: the Lehman Scale takes its name from the infamous Lehman Brothers that developed this method in the late 1960s to bring under control and standardise the market of private bankers’ finders fee.
It’s important to plan ahead and have your exit strategy clear from the start. What do you want to do with your life and your company? And how much of it should you give to investors in order to see new equity flowing into the business, propelling you towards the next stage of expansion?
WE ARE MAKERS, MARKETERS AND MANAGERS
We believe that in order to deliver amazing results a company must excel at 3 things
This Discounted Cash Flows technique involves deriving the value of a business by calculating the present value of its expected future cash flows. Projected cash flows, inferred from the Business Plan, are used for the five years ahead while the Terminal Value is adopted for the remaining foreseeable future.
How to value my company? Sure, you want to minimize the number of shares you will eventually give to investors, but you don’t want to scare them off as well. Above all being reasonable is the key when it comes to valuing your own company…
But first, let’s talk about the theories behind assets valuation.
OUR MANIFESTO: The world advances thanks to the effort of single brave individuals that innovate starting from zero. All successful companies become institutions sooner or later, and loose the ability to change and fuel progress. And the advancement of our human race is left in the capable hands of Founders and Entrepreneurs.
Closing an investment is something that could theoretically take less than a month, but this almost never happens. Normally six months is a good ballpark to start preparing your agenda, but what can you expect from this process?
