Flatworld Developed Financial Model to Support Business Valuation for a Top Enterprise Accelerator

The Client

The client is based in the United States (Florida) and works as an enterprise accelerator for venture firms raising debt and equity. Their experience includes more than 20 years of investment banking service provisioning that involves facilitating and expediting the path to effective sources of capital for customers. The client also specializes in improvement of operational processes before and after deals are completed.

Challenges Faced by the Client

The client needed financial modeling that would produce an assessment of discounted cash flow (DCF) in support of business valuation requirements for raising about $90 million of venture debt (VD) funding. The specific requirements involved cash flow analysis of historical data for one year and a forecast for five years.

The project involved these primary challenges -

• Identification of revenue streams to be used in the model
• Several data discrepancies

FWS' Solution

The Flatworld Solutions financial research specialists developed the following solution -

• The team included a senior project manager and a dedicated financial analyst
• Prior to beginning development of the financial modeling, the data discrepancies were resolved via research, communication, and client clarifications
• Revenue streams to be captured in the financial model were researched and finalized
• Historical cash flow statements, income statements, and balance sheets were analyzed as a basis for developing a 7-year forecast
• The team validated forecast projections using industry data for sales forecasts and estimates of market penetration based on the current and projected manufacturing capabilities and management expectations
• Business valuation was assessed using multiple data that included comparable trading and transaction examples as well as DCF projected streams

The Results

This project demonstrates a familiar outcome for the Flatworld Solutions team - giving the client more than what was requested and completing the project on-time and at affordable costs. The client required a 5-year forecast and our financial research experts provided a 7-year projection. Our team also provided multiple data points in support of business valuation.

Partner with Flatworld - Leader in Financial Research Services

Flatworld Solutions is a leading firm offering financial research services to clients from different parts of the world. In providing specialized financial research services, a major part of our job is asking the right questions both before and during the project. This helps us maintain our reputation for quality and precision in knowledge process outsourcing. Services we offer include financial modeling, financial advisory services, investment research services, etc.

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