Ventac Partners can provide independent expert valuation analysis and develop sophisticated valuation models that serve as financial management tools for your company. Our analysis enables you to assess the viability of new business opportunities (M&A, new projects, licensing deals, etc.), including the impact of those opportunities on your P&L, on your cash flow statement and on the timing and magnitude of your funding needs. Scenario and sensitivity analysis further illustrates the impact of best and worst case scenarios for many variables (price, market penetration, market share, various costs and so on) on your company's financial performance. Our valuation models are designed to enable business owners, executives, managers and boards of directors to make better educated business decisions that maximize company value.
We typically value a company or project at three levels, building high, medium and low scenarios. Within a chosen scenario, sensitivity analysis measures the variability in value due to changes in input assumptions, including price, market penetration, market share, various costs on the P&L and so on. This detailed analysis is used in order to identify and quantify the risk associated with a specific scenario so that the appropriate contingency plans can be developed to mitigate those risks. Our ultimate goal is to ensure that you are prepared to make well-informed business decisions during your strategic planning or negotiation process, whether you are negotiating an acquisition, divestiture, license agreement, JV, VC or PE financing, or any other major business transaction.
We have expertise in many valuation methodologies, including but not limited to discounted cash flow (DCF), probability adjusted DCF (for pharma/biotech), relative valuation and venture capital valuation. In most cases DCF is the cornerstone of the valuation process, while relative valuation models and venture capital valuation models are used to provide insight into what the public markets, potential acquirors or venture capitalists are willing to pay for similar assets. When performed in combination, these valuation methodologies will provide you with a reasonable valuation range for your specific business situation. The insight provided by our valuation will put you in a more informed decision-making and negotiating position.
For more information on valuation services, please contact us directly.