Valuation of Emerging Companies

ABOUT THE COURSE

Traditional financial metrics are great, if they can be applied.

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.

AGENDA

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
  • Pre-Interview 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
  • Tag-Along Rights
  • Drag-Along Rights
  • Redemption Rights
  • Anti-Dilution 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

WHO SHOULD ATTEND

This course is suitable for individual investors as well as analysts and money managers hailing from:

  • Venture Capital Funds
  • Venture Debt Funds
  • Private Equity Firms
  • Investment Banks
  • Hedge Funds
  • Mutual Funds
  • Pension Funds
  • Sovereign Funds
  • Family Offices
  • Angel Investor Groups
  • Incubators

ABOUT THE INSTRUCTOR

David Wanetick, Managing Director, IncreMental Advantage, LLC--a valuation firm with an expertise in valuing intangible assets and emerging technologies--based in Princeton, NJ. Clients include companies ranging from start-ups to Fortune 500 companies, technology transfer offices, incubators, hedge funds, venture capital firms and private equity players. David is the author of three books that have achieved world-wide acclaim, including the only two books that unveil Industry Analysis. He has been a guest on CNBC, Bloomberg and CNNfn and has been quoted in the Wall Street Journal, Barrons, Investor's Business Daily, Boards & Directors, and many other newspapers, blogs and magazines throughout the United States. His articles on Valuing Patents and Early-Stage Technologies and Negotiating Licensing Agreements have been published in Intellectual Asset Management, CEO Magazine, Licensing Journal, Willamette Insights, Valuation Strategies, IP Frontline, Technology Transfer Tactics, Inventor's Digest, The Canadian Institute of Chartered Business Valuators, and others. He speaks about valuing emerging companies and emerging technologies before many organizations and corporations. He has lectured all over the United States, Canada, The United Kingdom, The Netherlands, Belgium, Germany, Singapore, Kuwait, Malaysia, Hong Kong, India and Israel.

DURATION OF COURSE

The duration of this course is 1.5 days. The first day is a full day and the course continues the following morning. The course concludes at approximately 12 noon on the second day.

Course Schedule:

Silicon Valley, CA – August 30-31, 2017
Location: 975 Page Mill Rd
Palo Alto, CA
Time: 9:00 AM - 5:00 PM
(August 31, 2017 only: 9:00 AM - 12:30 PM)

TUITION

$1,495 (see Special Offer below)

Date / Location



SPECIAL OFFER

All registrants are eligible for a complementary copy of David Wanetick's latest release, Business Model Validation.

To register for the Valuation of Emerging Companies course or to become a Certified Emerging Company Analyst, please contact Neomi Barazani at 609-919-1895 ext. 100 or at info@bdacademy.com.

TERMS AND CONDITIONS FOR REGISTERING

Requests to cancel your registration for the Valuation of Emerging Companies course must be made in writing one month before the date of the seminar. Your refund will reflect a $95 processing fee. No refunds will be granted within one month of the course for which you are enrolled. You may send a substitute for an additional $55 processing fee.