AlphaValley team collaborated with the client to understand their customer’s persona. The next step was sizing up the market and identifying the growth pockets. Our team also conducted a financial performance benchmark of the key competitors. This analysis helped our client understand the market and competition better. The management used these insights to form their sales targets and business plan.

The next step was to develop a financial model. The management wanted to understand the capital requirements to achieve 3-4x growth in two years. AlphaValley team constructed a business model that presented scenarios to achieve different revenue goals and capital requirement in those cases.

Calculating valuation of a business is a fairly complex exercise. The problem amplifies further for small business because of relatively low/no consistency. Forecasting revenue, profits, and cash flow for high-growth ventures requires an analytical approach to avoid bias. However, unavailability of data compounds the problem as arriving at a narrow range becomes nearly impracticable. AlphaValley team conducted valuation using various approachs and presented a relatively narrow range that helped the client comprehend the ballpark valuation for negotiations with the investors. We crafted a presentation that helped the client showcase its business as a compelling venture.