Cambridge Corporate Finance provides business valuation services for companies spanning various industries. We understand the importance of a transparent and meticulous valuation process. With our proven techniques, you can have the utmost confidence that your stakeholders will receive an accurate representation of your company’s worth. Our team of financial professionals strives to make our valuation process both efficient and easy for you as a business owner. We help businesses of all sizes secure funding, develop metrics, and establish a baseline to help measure growth.
Our Fee:
$12,000 (50% upfront, balance on completion)
Companies of all sizes use our valuation services to secure funding from outside investors. When you sell equity to investors, you need a basis to quantify how much a percentage share in the company is worth. Here at Cambridge Corporate Finance, we can provide a comprehensive valuation that investors will trust. After receiving valuations, our clients can confidently make deals with equity stakeholders.
Private companies should get a business valuation at least once per year. Public companies, on the other hand, need a business valuation completed quarterly under SEC guidelines. A business valuation is not meant to just “check the box,” but rather to quantify the company’s worth in a way that can guide decision-making and business relationships. These are the top five reasons to get a business valuation:
We recommend getting a business valuation before making any major financial decisions, such as acquiring another company or entering a new market. For example, if your business value is much lower than expected, it might make sense to focus on improving your existing business lines instead of venturing into new areas of growth. A valuation can also help you determine if you can (or should) take on additional debt. An unfavorable valuation hinders your ability to negotiate and obtain better interest rates with lenders.
Our business valuations provide an all-encompassing view of your company’s overall health. When you know the value of your business, you can perform a comparable company analysis (CCA) and see how your business stands against competitors. Even if you have seen tremendous business growth, a valuation is one of the best ways to quantify that growth and understand your position in the market.
Whether you own a startup or an established firm, a business valuation gives you a baseline from which you can measure your company’s growth. Many companies measure growth in terms of sales revenue or gross margin but do not look at the company’s overall value. If you put your business on the market today, what could you sell it for? In the simplest of terms, the increase in your business’s value since inception or acquisition could be compared to a return-on-investment metric. A valuation can also act as a motivation booster and drive growth within a business.
Many lenders want to see your business’s valuation because it can help demonstrate your ability to repay a loan. On the other hand, a venture capitalist will want to see a business valuation as a way to calculate the amount of the loan, the percentage of equity share, and the overall profitability potential. An equity owner is more concerned about the going concern – the business’s resources, and its ability to continue operations. Banks are more concerned about the liquidation value – how much cash they can get if you go out of business and sell your assets.
If you plan to sell your business and exit the market, a business valuation is a must-have. Sellers want to see what your business is worth, obviously, and the valuation will help you either accept or decline an offer. Business valuations are also the backbone of buy-sell agreements with equity owners of the business. For example, consider a business with two owners – one with a 30% stake and the other with a 70%. If the 30% owner wants to exit the business, a business valuation helps determine the buyout price.
Cambridge Corporate Finance uses the Discounted Cash Flow (DCF) method to value businesses. The DCF is an analysis technique that uses three key values: future cash flows, a discount rate, and a number of periods. This valuation method is preferred over the standard income or asset approach because it considers the variability of cash flows. The result of the discounted cash flow calculation is the net present value of your business. Cambridge Corporate Finance uses complex financial models to calculate DFC valuations, models which incorporate non-cash expenses such as depreciation and amortization.
The discounted cash flow method does not work for startups that do not have a history of cash flows or revenue. Generally speaking, it is easier to value a business that has a couple of years of cash flows. Nonetheless, we do our best to accommodate businesses of various sizes and maturity levels.
Following its expansion into the United States, N26 received a $3.5 billion valuation which helped the fintech bank obtain an additional $470 million in series D funding. You might wonder, “why such a high valuation for a company that was founded in 2015?” The cash flows. Even though N26 only brings in $45 million in profits today, it has seen an influx of 10,000 new users a day and handles roughly $2.3 billion in monthly transactions. This is a prime example of how a DCF valuation is advantageous for high-cash flow businesses and helps them secure additional funding.
Our team of finance professionals has years of experience across multiple industries and our valuations have helped businesses secure millions of dollars in funding. We provide the resources and skillset that allows your business to better navigate the capital markets. Based out of Boston, Cambridge Corporate Finance is the go-to financial services firm for both startups and veteran businesses. Aside from professional business valuations, we also offer:
Our team of finance professionals has years of experience across multiple industries and our valuations have helped businesses secure millions of dollars in funding. We provide the resources and skillset that allows your business to better navigate the capital markets. Based out of Boston, Cambridge Corporate Finance is the go-to financial services firm for both startups and veteran businesses. Aside from professional business valuations, we also offer:
We charge a fixed rate of $12,000 to create your Valuation Report. Of the $12,000 fee, 50% is due in advance, and the remaining 50% is due upon delivery of the Valuation Report. With our fixed-rate pricing model, there are no surprises; you know exactly what you are going to pay before we begin the engagement. As a firm that strives to work with integrity and transparency, we believe that a fixed-fee contractual agreement is the best practice.
Banks and outside investors all require documented evidence proving your ideas will produce successful results. Strategic objectives, marketing and financial forecasts all need evaluating succinctly to aid decision-making.
To get an idea of how we can support your fundraising goals, download a sample valuation report created by Cambridge Corporate Finance.
Contact us today to get a professional DCF valuation with the help of skilled financial professionals. With a DCF valuation, your business can get the funding it needs to achieve optimal growth.
After we perform our DCF valuation and analyze your business’s operation, we provide you with a 50-page valuation report that covers various aspects of your business. With our thorough report, you can attract new investors and refine your growth strategies.
Are you ready to secure capital funding and expand your business’s reach? Schedule a free consultation with us today. Our team is ready to evaluate your capital needs and create a tailored approach to help you succeed. No commitment is required to begin the conversation.
Let us do the hard work and watch
your business sprout.
+1(480) 555-0103
Cambridge Corporate Finance LLC
18 Brattle St
Suite 400
Cambridge, MA 02138
Cambridge Corporate Finance LLC
18 Brattle St
Suite 400
Cambridge, MA 02138
© All rights reserved by Cambridge Corporate Finance LLC. We are not a licensed broker dealer. We do not sell or solicit securities of any type. We have never received any compensation for securities sold in any capacity. Cambridge Corporate Finance LLC is not a law firm. Consult independent counsel for any and all legal advice and questions.