See video walk through here: https://www.loom.com/share/5f1845ee32a1408fb9fae06c7ce54bfd

While our primary service offering is centered around an M&A and or financing transaction, we can provide ancillary services sought after by our client base, that supports related strategic initiatives. In a recent example, we were asked for help in providing a neutral, 3rd party valuation analysis, as one major shareholder of a company was seeking to buy-out a minority shareholder and operating partner. Additionally, the company was contemplating raising financing for the partner buy-out which we would potentially support as well. Clearly both parties were on opposite sides of the table, and heavily biased in determining a fair and equitable valuation to enable the shareholder buy-out. Given our past dealing over the years with this company, relationship with the CEO and strong domain expertise in the Company’s vertical, we were asked if this is something we can support.

We took on the engagement with the scope of work to provide a “Market” valuation analysis, which was primarily driven by comparable and precedent transaction analysis, as well as insights from our deep domain expertise. Our transaction and domain expertise in the cloud services vertical (which this company was based in) allowed us to utilize this methodology, leveraging not only our experience with deals we have closed, yet also the considerable time spent speaking with the most active investors and acquirers in these verticals to understand the latest and greatest valuation drivers. This non-public information comes from deals the acquirers have done and want to do going forward, what the valuations were on such transactions, any variations to valuations on current opportunities, and the laundry list of nuances that drive value in addition to macro fundamentals.

This allowed us to triangulate into a highly relevant and realistic valuation range, that was predicated on where the market was for such specific asset, driven by a company’s unique macro and micro attributes, financially, operationally and industry wise. Of course, there is no substitute for going out and getting a deal done, or marketing your company to strategic buyers to get tangible feedback (which I do feel is a worthwhile exercise to get direct feedback and substantiate expectations). However, I believe this market valuation approach with an industry and deal-centric practitioner such as us is the next best option. Below, please see a 5-minute loom video where we walk through this offering and a past client example (we rearranged financial information for confidentiality) in more detail:

https://www.loom.com/share/5f1845ee32a1408fb9fae06c7ce54bfd