Get clarity and confidence in determining the value of your business.
Growthink Capital takes a holistic approach to our valuation advisory services that “connects the dots” between macro market conditions, strategic planning, and financial analysis in arriving at a company’s most likely market value.
What We Can Do For You
- Strategic Valuations
- Pre-Capital Raise Valuations
- Pre-Business Sale Valuations
- Mergers and Acquisitions Valuations
Why Growthink Capital
Growthink Capital’s business valuation services have been engaged by companies of all types and sizes across a wide variety of industries, including:
- Software
- HealthTech
- Manufacturing
- Supply Chain / Logistics Tech
- AI / Machine Learning
- Cybersecurity
- E-commerce
- eMobility
- Distribution
- FinTech
- Business / Productivity Tech
- EdTech
Due to our many active valuation and investment banking mandates, we have up-to-the-moment data and intelligence on deal and transaction values. This allows us to advise on positioning and strategic growth strategies that maximize your company’s value per current market conditions.
If you are looking for a corporate valuation advisor, we invite you to contact us today.
Growthink Capital Client Testimonials
Our Valuation Advisory Process
The value of a business is dynamic and is driven by both internal factors (leadership, people, financial performance, brand, tangible assets / intangible assets, market positioning, commercial real estate assets, etc.) and external ones – the needs, desires, and appetites of an investor or buyer at a particular point in time. That is why at Growthink Capital we focus both on uncovering the unique story of your firm’s strengths, assets, and potential growth paths, and then “connecting the dots” between this story and capital market and deal conditions at the current time.
Our valuation services assist clients first by understanding the reason for and circumstances surrounding a request for a valuation and whether a business is looking to raise capital, sell a portion or all of your company, merge with / acquire another firm, or for a strategic “snapshot” as to what your company is worth now and the factors driving a potential future increase/decrease of that value.
We next analyze external macroeconomic, market, and industry-specific factors (including a comprehensive analysis of recent, comparable transactions), as well as current trends and expectations regarding how those conditions will evolve over time.
Through conversations with you and review of your firm’s business and financial data, we build our understanding of your company’s greatest growth opportunities and their timeline to and the likelihood of actual execution.
From this analysis, we then prepare likely valuation considerations and scenarios from the perspective of different categories of investors and/or buyers, along with recommendations on how to attain the higher end of a valuation range.
Valuation Methods
In our valuation services, we employ a variety of valuation and financial reporting approaches to assess the market value of a firm, including:
Earnings Multiples
Variations on historical revenue and EBITDA multiple valuations are always the most important starting point in a business valuation. By comparing a company’s revenues and earnings and other financial reporting data to similar market transaction data, we are able to benchmark your firm’s value and identify key differentiators that your firm can leverage to command upper-end multiples.
Discounted Cash Flow Analysis (DCF)
Most companies prefer to be viewed and valued on their future prospects and not their past financial results. Discounted Cash Flow is a powerful valuation technique that estimates your firm’s value by discounting projected future cash flows to present value. This method relies on forecasts of a company’s future cash flows, which are then discounted to account for the time value of money and the risk associated with those cash flows.
Very importantly, in DCF analysis a compelling case needs to be made for the value of a firm’s intangible assets (people, intellectual property, culture, brand, etc.) and its market opportunity, as when this is done excitingly and credibly the value of a company can rise exponentially.
Pre-Money and Post-Money Valuations
A pre-money valuation is an estimate of a company’s value prior to the investment of new capital, while a post-money valuation is the value of a company after the investment of new capital. Per the above, Pre-Money valuations are driven as much by historic financial multiples as they are by Discounted Cash Flow Analysis and the proper positioning of a company’s intangible assets and market opportunities, and thus in our valuation advisory services, the “narrative” of the valuation is often as if not more important than the component of it based on financial reporting.
Each of these specific valuation methods takes into account different factors, such as the time horizon of the forecast, the level of financial risk, the quality of the financial reporting, the nature of the regulatory authorities/complex, and the company’s unique circumstances.
Contact us today for more information on our valuation advisory services and to schedule a consultation.
