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Methods
SG Systems can provide company valuation models for merger
and acquisition activities, venture capital or other forms
of fund raising, and for stakeholder information.
Venture Capital / Fund Raising
Few start-up firms survive to maturity on the
basis of a single round of financing. It is the nature of
the venture capital paradigm that companies consume cash in
their early stages at unforeseen instances and at alarming
rates. Not only must products be developed, but in the
classic venture capital scenario, a new market must be
penetrated and sometimes even created.
SG Systems can develop optimized portfolio
valuation models which are rolled up into company equity
valuation models that can demonstrate the future worth of
investing in your firm. The entire modeling system is
typically interlinked where a change in one, let's say
change one product from using an in-house sales team to
out-licensing the distribution, will ripple through and
reflect the accurate effect of this modification in business
strategy.
SG Systems' modeling for VC and fund raising
efforts can help you obtain the necessary rounds of funding
needed to expand and grow your business.
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Expand or
die. -- Roman Empire |
Mergers and Acquisitions
Companies in various states of maturity are
not only confronted by the day-to-day operations of their
business, but are continually evaluating the pros and cons
of either selling their firm, buying another company, or
considering possible synergies between itself and potential
merger partners. It is the constant evaluation of
maximizing value to the stakeholders that creates the need
for M&A.
SG Systems can implement financial models
that will not only show your firm's value, but the value of
the other company of interest. If you plan of
purchasing another company, selling your company to another,
or merging with another company, you would certainly be
interested in the true value of that firm and a good
financial model will give you a transparent view of the
potential transaction. The model can then highlight
points of sensitivity and clarify any deal terms that may be
required to satiate all parties.
Cash flow models are utilized extensively
along with NPV Split models to illustrate how a merger or
acquisition financially affects all involved companies.
In addition, the use of options within the sphere of M&A
activities is growing. Purchasing an option from the
firm of interest can significantly effect the value of the
deal and these options need to be accounted for in the deal
terms portion of the modeling system.
Stakeholder Information
Stakeholders in any financial venture want to
know how much their holding are worth. Whether you
need a firm equity valuation to satisfy lending
institutions, board members, or equity holding employees, SG
Systems can put together a robust financial modeling package
that will suit your needs. |
