Traditional financial analysis training is clearly inadequate for evaluating emerging companies.
Trying to value an emerging company with traditional financial metrics is like trying to measure the volume of the oceans' water with a compass. Financial gunslingers armed to the teeth with traditional financial theory and heavy reserves of financial ratios will find that these widely-taught weapons are largely ineffective in dissecting and understanding emerging companies.
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 companies and technologies is littered with broken business models, ill-timed commercialization strategies, entombed intellectual assets and hallucinatory managerial expectations. To overcome these challenges, the emerging company analyst must be able to assess management, size addressable markets, gauge competitive environments, determine the potential of technologies, understand how capital structure will impact shareholder returns and ascertain intellectual property positions.
The Certified Emerging Company Analyst designation is the only program that combines the following disciplines into one integrated learning deliverable:
- Business Model Validation
- Financial Forecasting
- Valuation of Emerging Technologies
- Allocation of Equity Among Different Classes of Stakeholders
- How Emerging Companies are Affected by Financial Transactions with:
- Venture Capitalists
- Private Equity Investors
- Angel Investors
- Investment Bankers
- Competitive Intelligence
- Much More