Our team provides comprehensive strategy consulting and valuation services for startups and entrepreneurs. We rely on cutting-edge recursive models to determine value-maximizing strategies and valuations that account for multiple scenarios, asymmetric risks, changing conditions, and the numerous options available to you.
Services for Entrepreneurs and Startups
Entrepreneurs and startups face a myriad of challenges. We have real-world experience as entrepreneurs and business leaders and provide the following services to help you navigate those challenges. Our services include:
Entrepreneurs and investors alike struggle to determine the value of new businesses and ideas. Traditional techniques fail to account for the multiple scenarios, changing conditions, asymmetric risks, and short tenures involved in a startup. Our experts can help entrepreneurs overcome these challenges by providing comprehensive valuation estimates, and strategic advice for building value. Our book, The Economics of Business Valuation
, discusses this type of valuation.
- Market Research
Knowing your market is critical to demonstrating business feasibility. Our team provides customized analyses of consumer markets, industry and government markets, competitors, demographic and socioeconomic forecasts, and policy and regulatory considerations.
- Business Plan Assistance
A strong business plan is far more than a good idea or superior product. Your business plan must convey your understanding of all elements of the business, including management, finance, sales, product development, human resources, competitors, and your customers. Our team assists in both compiling and presenting these critical elements in comprehensive yet concise plans.
- Due Diligence
Evaluating investment opportunities comes down to more than a bottom line dollar amount. Our research and analyses provide a comprehensive view of value, accounting not just for dollars invested, but also for the strategic options and opportunities that strategic partners may bring to the table.
The experts at Anderson Economic Group understand traditional and cutting-edge valuation techniques. The valuation of start-up companies requires a deep understanding of each technique, including why they are or are not appropriate for the task at hand. To cope with some of the shortcomings of traditional techniques, we have developed a novel valuation technique: value functional analysis performed using Rapid Recursive® Toolbox software from Supported Intelligence, LLC. This allows us to take into account a start-up’s asymmetric risks, real options, and control over decision-making that are ignored by traditional valuation techniques.
Characteristics of Start-Up Companies
Start-up companies are, quite simply, different from established companies. Their valuation involves considerations that are often very different to those in the valuation of established companies. Those considerations often include:
- Lack of a history of profitability and an established customer base.
- The absence of an established market for equity.
- Minimal publicly-available information about prices at which similar companies have been bought and sold.
- Lack of standardization of deal terms, resulting in long negotiation periods, and terms that could include a mixture of debt, equity, fees, and/or options.
- Significant due diligence and transactions costs.
- Promising technologies.
Uses for Anderson Economic Group Valuation Reports
Start-up companies use AEG’s valuations to help identify strategies to increase value. They have also been used to support negotiations with investors, as well as for owners’ internal purposes. Our valuations typically enable the entrepreneur to accelerate negotiations with potential investors.