Business valuation, the process and set of procedures used when estimating the economic value of a business, is paramount for several reasons, including fundraising, establishing a fair market value for equity transactions, and periodic reporting to investors.
We have over 28 years of experience in company valuation with specific expertise in valuation in the early stages of companies. Our most recent assignment was valuing a software company that was looking to expand to new markets. The objectives were: to determine whether the current business had created shareholder wealth and the value shareholders are likely to derive from the expansion. The model used for fundraising purposes was business-to-business.
Negotiation and Structuring Transaction Agreements
Negotiation and structuring transaction agreements is a critical step in any transaction as it seeks to align the founders’ needs and concerns with those of the investor.
At ViKtoria, we have the pertinent negotiation skills and experience necessary in arriving at satisfactory terms for both the entrepreneur and the investor while keeping our eyes on the long term objectives of the entrepreneur. Most recently we participated in the negotiations of an early stage business in the digital advertising space that was in the process of being acquired. We have also closed on 7 deals to date.
Once a non-binding offer letter is signed between the entrepreneur and the interested investor, the next step is to identify the goals of the two parties, which tend to be strategic and/or financial. Both parties then establish steps to help them achieve these goals as well as how to share risks.
Our team has experience in deal structuring in areas of reviewing term sheets, recommending acquisition vehicles or, entity types, resolving accounting issues, and advising on capital structuring. We appreciate that tax is a key consideration in investments, and we seek to address these with the help of outsourced consultants. We have helped several early stage ventures review their term sheets and shareholder agreements to arrive at optimal structures that favor both them and the investors.
We work with several funds in helping them source for deals, carry out due diligence, close the investments, monitor their portfolios once invested in and manage the exit process. We are currently providing fund management services to HEVA Fund, a fund for Creatives in Kenya, and InReturn East Africa fund where we help manage their portfolio while searching for an exit. We are also in the process of raising a fund focused on scalable early stage business in Kenya.
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