Newsletter: October 2011
What is the "value"
of a valuation analysis?
For starters:
- Third party I.P. valuations are expected by investors
- Know where you stand in relation to competition
- Up-to-date confirmation of your revenue projections
Most investors are not very creative. With that being
said, let me
explain. When an investor reviews a business plan they are trained to
examine all the numbers, especially revenues vs. expenses. They also
look at the opportunity for themselves in how much of the company they
can receive for their investment. Professional investors always
have precalculated value ratios for a buy-in at each level or round of
funding.
When you provide an I.P. valuation you add a new
dimension to your
proposition. It allows you to use realistic market comparables and
histories as examples of where your company can be and how that fits
into your vision. Don't forget, it's your company and you are expected
to know all. Most business plans have sections on competitors but very
few have sections on comparables that are successful, how successful
they are and where they are heading. They can provide examples of how
others reached their goals and most importantly shows investors that
your concept can in fact work.
Two extreme examples of investor value are Apple
Computer and
ExxonMobil. They have been battling each other for title of the
country's most valuable company, one based on the price of oil and the
other on a history of successful innovation and creating new revenue
streams. But there is another huge difference between them. As a
company, ExxonMobil has tremendous assets in plant, property and
equipment but their balance sheet shows zero Intangible Assets. On the
other hand, Apple has high stock price based on investor expectations
of future earnings of which they have a strong history. They also have
over $1 billion in Intangible Assets listed on their balance sheet.
We have the tools, experience, insight and data to
provide a
world-class valuation report based on your I.P. with supporting data on
what you can achieve and how your company can perform. We do this as a
third party objective opinion and provide you a new tool in addressing
valuation issues and equity distribution for investors.
Technology Resource of the Southeast, Inc.
is an objective, third party regional service provider. We specialize
in assessment, analysis and valuation of new products and emerging
technologies.
Call us anytime for assistance or free consultation.
(423) 929-0380
Previous Newsletters:
Newsletter: May 2011
Newsletter: July 2009
Newsletter: June 2008
Newsletter: January 2007
Newsletter: October 2006
Newsletter: March 2006
Newsletter: October 2005
Newsletter: July 2005
Newsletter: April 2005
Newsletter: December 2004
Newsletter: September 2004
Newsletter: June 2004
Newsletter: January 2004
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