Evaluating a start-up or new business

Compétences acquises :

Master the most appropriate valuation tools for new activities or companies in different contexts.

Model the uncertainty inherent in this type of activity in terms of cash flows/discount rates.

Apply a multi-criteria approach to support your results.

Know how to use publicly available tools.

Présentation générale :

Estimating the value of a start-up or a new activity can sometimes prove complicated: lack of data, lack of benchmarks, difficulty in implementing valuation methodologies, difficulty in rationalizing the results obtained, etc. The aim of this training course is to help you select the most appropriate methods for this type of exercise, and to discover or gain a better understanding of the tools available for carrying out this type of valuation.

Programme :

Sequence 1 : Introduction

The speaker will present the program, identify participants’ expectations, encourage active listening and manage the administrative aspects.

Discussions between participants. 

Sequence 2 : Strategic and financial analysis as a prerequisite

• This part is adapted to the participants’ level of knowledge and profile.
• Powerpoint presentation of a “toolbox” (ratios, analysis automatisms, check list, etc.) to use when performing a valuation. 

Sequence 3 : Valuation approaches based on future earnings

• Overview (including the DCF method), principles, advantages and disadvantages. This section is adapted to participants’ level of knowledge and profile.
• Powerpoint presentation to review the basics.
• Quizzes and discussions between participants to identify needs and problems encountered by participants.

Sequence 4 : Valuation approaches based on comparable companies and comparable transactions

• Overview, principles, advantages and disadvantages. This section is adapted to participants’ level of knowledge and profile.
• Powerpoint support to review the “basics.
• Excel example with answers.
• Quizzes and discussions between participants to identify needs and problems encountered by participants.

Sequence 5 : Asset-based valuation approaches

• Reminders (particularly on net assets and revalued net assets), principles, advantages and disadvantages. This part is adapted to the level of knowledge and profile of participants.
• Powerpoint presentation to review the basics.
• Quizzes and discussions between participants to identify needs and issues encountered by participants.

Sequence 6 : “Traditional” valuation methods adapted to start-ups / new businesses

• Part 1: DCF.
• Part 2: Comparable methods.
• Examples, feedback
• Practical case studies (based on real cases) :
  • Construction of forecasts “from scratch” for a new activity.
  • Analysis of transactional multiples adapted to a start-up company.

Sequence 7 : Valuation methods specific to start-ups / new businesses

• Identifying and analyzing key assets to be valued, finding the right balance between growth and risk.
• Examples, feedback.
• Implementation through case studies (based on real-life situations):
  • Historical costs method for valuing technological assets or newly-created brands (practical case on excel with answer sheet).
  • Other methods adapted to participants’ specific needs.

Sequence 8 : Introduction

• Feedback day 1 and program day 2.
• Discussions between participants.

Sequence 9 : Modelling uncertainty: in the cash-flows and financial aggregates selected

• How do you model flows based on very limited data? How can uncertainty be incorporated into these flows? What time horizon should be used? Which aggregates should be used?
• Examples and feedback.
• Use of available public databases: practical examples to familiarize yourself with these databases.

Sequence 10 : Modelling uncertainty: in the discount rate

• What rate should I use? How to calculate it? How do you use simple databases when you don’t have access to paid databases / when you’re not familiar with this type of calculation?
• Examples and feedback.
• Use of publicly available databases: practical examples to familiarize yourself with these databases.
• Illustration through analysis of a detailed case study.

Sequence 11 : Modelling uncertainty: through scenario analysis

• What scenarios should be defined? How to use a probability tree?
• Examples and feedback.
• Use of available public databases: practical case to familiarize yourself with these databases, in particular INSEE data.
• Illustration through analysis of a detailed case study. 

Sequence 12 : Rationalizing results using a multi-criteria approach

• How to reconcile different results? How to prioritize methods?
• Illustration through analysis of a detailed case study.
• Discussions between participants to deal with specific cases. 

Sequence 13 : Using sensitivity tables

• Identify the relevant criteria on which to base this analysis, model these analyses on Excel.
• Using Excel and data selection criteria to “run” tables.
• Practical application with answers.

Sequence 14 : Rationalization with available market data

• Comparison of results obtained with available market data, use of public databases.
• Use of available public databases.
• Illustration through analysis of a detailed case study.

Sequence 15 : Conclusion

On-the-spot debriefing of the training session, perspectives on the use of new concepts seen during training, discussions

Offre de formation :

This training can be part of an in-company training program or a training course.