Market Overview

2 Day Course: Valuation of Emerging Companies -


The "Valuation
of Emerging Companies"
conference has been added to's

The problem with applying traditional financial metrics -such as
return-on-assets, net profit margins and price-to-earnings ratios-

to emerging companies is that they have no earnings (quite often, no
revenues either) to be factored into such ratios. Emerging company
analysts live in a world without historical performance and comparables.
It is an opaque world as the subject companies are typically not
required to disclose any information. It is a solitary world as the
emerging company analyst is often the only investor taking a serious
look at the subject company.

The path to discovering the most promising early-stage companies is
littered with broken business models, ill-timed commercialization
strategies, severe underestimation of competition and hallucinatory
managerial expectations. To overcome these challenges, the emerging
company analyst must be able to assess management, scrutinize business
models, size addressable markets, gauge competitive environments,
determine the potential of technologies, and understand how capital
structure will impact shareholder returns.

Whether you are interested in investing in angel- or venture-backed
companies; micro- to small-cap public companies; firms traded on
secondary markets; or, businesses raising capital through crowdfunding,
this course is designed to provide you with actionable analytical skills.


Emerging Company Due Diligence

  • Market Sizing and Pain Point Analysis
  • Management Assessment
  • Compound Risks
  • Suitability of Name
  • Customer Engagement
  • Sales Cycle Analysis
  • Interest Alignment (Investors, Boards and Management)

Competitive Intelligence

  • PreInterview Due Diligence
  • Where to Conduct Interviews
  • Bracketing Responses
  • Elicitation Strategies
  • Detecting Deception
  • Secondary Sources

Valuation Methodologies

  • Cost Method
  • Market Method
  • Income Method
  • Breaking Costs of Capital Analysis
  • Decision Trees
  • Probability Weighted Expected Return Method
  • Conventional Venture Capital Method
  • First Chicago Method
  • Monte Carlo Analysis
  • Binomial Lattices

Financial Analysis

  • Common Size Analysis
  • Revenue Recognition
  • Customer Acquisition Costs
  • Lifetime Customer Value
  • Revenue at Risk
  • Insider Transactions
  • Contingent Liabilities
  • Excess vs. Operating Cash
  • Viability Ratios

Venture Capital Financing Issues

  • Convertible Debt
  • Options Pools
  • Liquidation Preferences
  • TagAlong Rights
  • DragAlong Rights
  • Redemption Rights
  • AntiDilution Issues
  • Vesting Issues Cliffs, Acceleration, and Triggers
  • Cashless Exercise

Business Model Validation

  • Analog and Antilog Analysis
  • Adoption Chain Risk
  • Scale and Compressibility
  • Model Portability
  • Custom Migration Paths and Attrition
  • Supply Chain Risks

For more information about this conference visit

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