Valuation PP - Business 173c Valuation Professor Bennet...

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Click to edit Master subtitle style Business 173c Valuation Professor Bennet
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Agenda n Announcements n Project Deliverables – Part 1 n Lecture q Financial projections (finish last week) q Valuation n Case – Zipcar n Homework Assignments
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Group Project – Business Model n Concept Overview (Business Story) n Summary of Market Research completed n Business Model Summary q Markets and Customers q Products/Services q Distribution – (Sales/Marketing) q Financial n What is the profit engine? n Key Revenue and Cost Drivers n Investment Required q Critical Success Factors/Risks n Open questions q What do you still need to figure out to determine if business is viable?
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Deliverables n 2 page summary of business model n n Upload presentation and business model summary to assignments area of WebCT by 11 AM on April 6 n Hard copy of presentation turned in at beginning of class on April 6 (up to 6 slides per page) n Grading q Presentation delivery (5 points) q Presentation content (5 points) q Business Model Summary (10 points)
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Typical Venture Financing History Seed Round Founders Angels Concept Creation Venture Capital Venture Rounds Institutional Venture Capital Multiple rounds at stepped-up valuations Asset based debt Proof of concept Build Management Team Revenues Mezzanine Round Private Equity Traditional Debt Build distribution Expand product line Build 2nd levels of management Increase working capital Profitability IPO! Secondary Offering Corporate Finance Activity Convertible or High-Yield Debt Commerical Paper Bond Issuance Internal growth M&A
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Valuation n Traditional Methods q Assets q Market Based/Comparables n Market Capitalization (stock price x number of shares) n Multiple of Revenue/Earnings/Cash Flow/Other q Multiple of Revenue q Net Income (P/E Method) § Historical (trailing) or Future (forward) q Cash Flow q Industry Specific Metrics/Rules of Thumb q Discounted Cash Flow (Free Cash Flow)
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Valuing with Market Multiples Estimated Market Value of Control Devices, Inc. ($ millions) Control
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This note was uploaded on 09/08/2010 for the course BUS 173C at San Jose State University .

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Valuation PP - Business 173c Valuation Professor Bennet...

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