Flatworld Developed Financial Model to Support Business Valuation for a Top Enterprise Accelerator
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 16 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
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
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.
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