DESCRIPTION
The financial analysts at oak business Consultants have done thorough research on different valuation methods, formulated formulas and links, and consolidated the valuation methods into a single excel document. The consolidated Tool for all valuation methods helps the investors/ founder know the company valuation not only through one valuation method but different methods so that they can make an informed decision.
The consolidated tool contains discounted cashflow, Scorecard, risk factor summation, Checklist(Berkuss) method & Venture capital method. The tool also contains a guide to help you understand the valuation methods and their use in different scenarios.
The model Contains the following sheets.
Guide
The guide contains information about the valuation methods and the use of those methods in different scenarios to help you understand the valuation methods better before you go into the calculation part.
Assumptions
The assumption sheet contains the input in the peach-filled column that you have to enter according to your data, and the tool will update the valuation calculation based on your entered data.
Discounted cashflow
The discounted cash flow sheet presents two different methods of calculating Net Present Value based on the discounted cash flows.
DCF Valuation by Long-Term Growth Method: This method is suitable for business models/ projects that are expected to continue on a going-on basis. The terminal value is calculated by multiplying the last year's projected free cash flow with the survival rate, long-term growth rate and discount rate.
DCF Valuation by Multiples Method: This method is used to determine the terminal value for NPV calculation when operations are to be discontinued. The terminal value is simply calculated by multiplying last year's projected EBITDA with the industry's survival rate and the EBITDA multiple.
Scorecard Valuation
When using this method, investors typically look for comparable startups with similar characteristics and growth potential in the same industry. Companies use this to assess the potential of an investment opportunity before deciding whether to invest in the company. The method can help identify a startup or early-stage company's strengths and weaknesses and evaluate its potential for success.
Risk factor summation
Investors use the method when significant uncertainties and risks are associated with an investment opportunity, like new technology. It helps investors and decision-makers assess an investment opportunity's potential risks and rewards and make informed decisions.
Checklist (Berkus)
This Method assigns a value to the startup's idea and the five principal factors determining its success potential.
Early-stage startups with no revenue but have a strong management team use this method.
Venture Capital
The Method is often used to value early-stage startups with no revenue but strong management teams and complex investment opportunities. For example, those involving multiple rounds of funding, convertible debt, or other financing structures.
Interactive Dashboard
The dashboard visually represents the different valuation method results in a single sheet. Hence, you don't have to move sheets to see the data. The dashboard has a slicer in which you can select the checkboxes for the fields you want to display.
Benefits of the consolidated Tool for all valuation methods
The tool contains a guide to help you understand valuation methods and their use in different scenarios.
You just have to change the input, and you will get the output automatically.
The tool contains different valuation methods in a single excel document. Hence, you do not have to buy different templates for different valuation methods.
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Source: Best Practices in Valuation Model Example, Valuation Excel: Consolidated Tool For All Valuation Method Excel (XLSX) Spreadsheet, Oak Business Consultant
Valuation Model Example Valuation M&A (Mergers & Acquisitions) Venture Capital Banking Manufacturing
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