Trusted By:
0 Part Course  | 
Book places now

Valuing Start-Ups & Pre-IPO Companies

Master the valuation of pre IPO companies

Valuing Start Up and Pre IPO Companies Training Course

A two-day course

  • Highly interactive workshop with several real-life valuation case studies
  • Experienced trainer, an M&A banker with decades of financial modelling experience and corporate valuation at all stage of their life cycle
  • Comprehensive material covering techniques and tips on valuing start-ups and pre-IPO companies
  • Delegates encouraged to bring their own valuation challenge to ‘solve’ during the session

  • Understand the life cycle of companies and what key metrics to consider.
  • Have explained to them the different financial rounds from seed, Series A, B, C to pre-IPO rounds to the IPO itself.
  • Master the valuation methodologies of pre-IPO companies, including seed, scale-up and growth phases
  • Learn how to perform capitalisation tables, ownership dilution with option pool.

Introduction to start-ups

  • Lifecycle of companies, from start-up to IPO
    • Initial concept, product development, manufacturing and sales
    • Assessment of level of revenues, EBITDA profitability and cash flow positiveness
  • Financing Rounds
    • Seed, Series A, Series B, Series C and Pre-IPO Rounds
  • Structure of VC investment: two-tier equity structures, convertible preferred stocks
  • The players in venture capital (VC)

Exercise: Participants perform mini case studies on risk and return and investment structuring

Start-ups valuation methodologies

  • Seed phase vs. growth/scale-up phases
  • Pre and post money valuation
  • Seed valuation method
    • Berkus
    • Scorecard
    • Risk factor summation

Exercise 1: Compute the value of a potential investment at seed capital level
Exercise 2: Value a company at growth & scale-up level

Funding Instruments & Capitalisation Tables

  • Cap. tables as a summary of ownership structure at different funding rounds
  • Up, down and flat rounds
  • Using debt instruments with equity characterisitics: convertible preferred stocks
    • Conversion into common stock
    • Liquidation preference
    • Antidilution protection
    • Protection in future 'down round' 
    • Control (board seats and votes)
    • Veto rights and blocking rights
    • Pre-emptive rights
  • Dilutive instruments: option pool & ratchets for management and employees

Case study: participants build complete a capitilsation table based on convertible preferred stocks

Final Case Study

  • Participants will assess the investment in Project Future
    • A growth company specialised in developing robots to assist the mobility of older people
  • Entire financial model will be built, a 10-year three statement financial model
    • Series A, B, C, D and E through the lifecycle of the company
      • Venture Capital Method used with capitilisation tables
      • For Series C, a DCF will be performed
  • IPO analysis as the main exit for the investment 
    • Establish the IPO offer price with trading multiples and DCF
    • Decision on level of primary vs. secondary shares
    • Pro forma balance sheet, analysis of multiples per offer price
  • IRR and MoIC returns calculated

 

The trainer has more than 20 years of experience in accounting and investment banking. He is an experienced financial trainer who has delivered courses for leading financial institutions and central banks in the City of London, Wall Street and around the world in the areas of Corporate Finance, Valuation (Industrials and Banks), Financial Modelling, M&A, LBO, Financial Accounting, Capital Markets, Bank Regulatory Capital and Financial Risks, both in English and French.

He began his career as a Credit Analyst at Banque Continentale in Luxembourg, where he conducted credit analyses for short and long-term credits and participation in loan syndications. He then worked as a Senior Auditor for Deloitte & Touche in Luxembourg companies, auditing and preparing financial statements for a variety of banks, insurance, investment funds, venture capital and commercial companies.

He continued his career in Investment Banking at Citigroup (ex-Salomon Smith Barney) in London and New York where he worked on a variety of M&A, LBO and debt offerings, mainly for financial services clients. He was involved in the EUR 20 billion public offer of Crédit Lyonnais by Crédit Agricole, one of the largest European banking transactions.

He then worked as a Vice-President in the internal M&A department of Barclays Bank in London where his experience included the acquisition of ABSA for US$ 5 billion, one of the leading South African banks, the purchase of ING Private Banking in France and the failed acquisition of Banco Atlantico in Spain.

Recently, he was a Director in the Investment Banking department of Commercial International Bank (CIB), the largest non-government bank in Egypt, where he has successfully completed several transactions including two sell-side M&A deals, one follow-on equity offering and a delisting. He worked extensively with leading sovereign wealth funds, private equity firms and prominent families in the UAE, Qatar, Kuwait and Saudi Arabia.

The trainer is currently a senior advisor to an M&A practice based in Paris and focuses on buy-side and sell-side transactions, mainly in the technology sector.

The trainer has an MBA in Finance from the Kellogg School of Management in Chicago and a Bachelor of Science in Finance from Groupe INSEEC (“International Management Institute of Paris”). He also holds « Series 7 » and « Series 63 » US licenses.

This advanced valuation and modelling course looks at the valuation approaches to be taken to enable participants to value companies which may be at differing stages of development and growth profiles. Traditional valuation techniques assume a simple two or three stage growth profile and a terminal value or basic multiple based valuation tools. This course looks at some of the more difficult companies to value based on the underlying fundamentals of the development stage at which the company operates.

 

The course covers companies at the early growth and start up stage, such as technology, biotechnology and any early funding stage business. The key challenges associated with such companies are discussed and the best valuation approach considered.

 

The course also covers pre IPO companies at the rapidly growing phase of development which, depending on the geographic location, may cover a wide variety of sectors. As well as discussing some of the current issues with traditional cash flow and multiple based valuation approaches the course will cover more advanced valuation approaches such as decisions trees, simulations, scenario analysis and real option valuation. The course will also consider the role of risk assessment in the valuation process and how macro-economic analysis can affect the valuation approach taken.

 

Examples are provided to illustrate each issue.

Participants will be required to bring a laptop to the course.

Have this course presented In-House

  • On a date, time and in a location of your choice
  • Topics expanded or deleted to your bespoke requirements
CLICK HERE TO REQUEST A FEE QUOTE

Have this course pre-recorded

  • Full course recording edited exclusively for your company
  • Files converted to enable housing on your LMS
CLICK HERE TO REQUEST A FEE QUOTE

Popular Courses

Clients that have booked this course have also attended the following courses:

We use cookies

In order to show you courses tailored to your profession we use cookies.

To enjoy all the features of this website please accept.