Kate Collier, Technical Manager
When preparing for investment, ensuring your company valuation stands up to scrutiny is crucial. At bennettbrooks, we support businesses looking to raise finance or attract new investors by providing independent reviews and robust financial modelling. In this case study, Technical Manager, Kate Collier covers the work carried out for one of our clients who wanted to confirm their company valuation ahead of applying for investor funding.
Case Study 4: Third party review of a financial model to support due diligence
The client: An AI Powered medical platform, seeking funding for product rollout.
The challenge: A client had produced a cashflow forecast to support a valuation of the company and its subsidiary with an upcoming pre-series A funding round. They were seeking a third-party review to confirm the company’s current valuation and that this valuation was based on clearly defined assumptions and financial projections.
Our approach: We performed a limited scope review on the main model components that drove the valuation, such as revenue assumptions, discount rate, perpetual growth rate and cashflow projections. This review looked at both the accuracy and consistency of the assumptions flowing through the model, as well considerations of the appropriateness of those assumptions.
The outcome: The client received a detailed report of our findings including areas that would warrant investor scrutiny and they should therefore consider providing more supporting information, as well as some guidance on improving the model transparency. They were able to make these changes, thus providing a much improved valuation for investors, together with our report with commentary on the assumptions and methodology to enhance investor confidence.
We have helped many of our clients successfully access funding and understand that a clear, credible company valuation can make all the difference when securing funding or negotiating with investors. We have experts at bennettbrooks that use their technical knowledge and commercial insights to help our clients understand the true value of their business.
If you’re preparing for investment, sale, or shareholder discussions and need expert support with your company valuation, please get in touch.
