Valutico enables users to efficiently perform company valuations through a structured step-by-step process. This guide provides a comprehensive walkthrough of how to create a private company valuation on the platform.
Accessing the Private Company Valuation Workflow
Navigate to the Valutico Dashboard
Go to the Private Markets section from your main dashboard.
Click 'Start New Private Valuation'
Click the Start New Private Valuation button to initiate the process of creating a new valuation.
Step 1 - Upload Relevant Documents for Your Valuation
At this step, you can upload documents that support your valuation.
These may include:
Company presentations
Pitch decks
Financial estimates
How to Upload Documents
Drag and Drop Files
Drag your files directly into the upload box.
Browse and Select Files
Alternatively, click the upload box to browse and select files from your computer.
Note: Uploading documents is optional but can help streamline the valuation process by providing valuable reference materials.
Step 2 - Entering Company Details
In this step, you'll need to input the Company Name of the entity being valued.
Step 3 - Company Description
Valutico offers an AI-powered assistant, Co-Pilot, to help populate the company description. You have two options:
Retrieve Data from Public Sources
The AI will fetch company details automatically from publicly available information.
Enter Data Manually
You can input the company description yourself for greater accuracy and control.
Co-Pilot Considerations
While retrieving data from public sources can save time, the AI might occasionally pull outdated or incorrect details. It's essential to verify the accuracy of the information before proceeding.
For private companies with limited publicly available data, entering the description manually ensures that key business aspects are accurately reflected.
Step 4 - Adding Additional Company Information
In this step, you’ll be asked to provide key details about the company. This information will help refine the valuation process and is necessary for financial modeling and peer comparison.
Fields to Complete
Location of Head Office
Select the country where the company is headquartered.
Industry
Search for or browse the relevant industry classification. This helps with benchmarking and selecting appropriate valuation peers.
Last Annual Revenues
Enter the most recent annual revenue figure.Currency: The currency can be adjusted from the dropdown menu.
Maturity
Select the company’s stage of growth (e.g., Startup, Growth, Mature). This is useful for applying appropriate risk factors in valuation.
Similar Peers
Search for publicly traded companies that operate in the same industry. Peer comparison is crucial for using multiples-based valuation methods.
Valuation Date
Set the specific date for the valuation.If the "Keep updated" toggle is enabled, the valuation will automatically refresh with the latest available data.
Last Actual Year-End
Specify the last completed financial year for accurate data input. The default selection is set to December 2024.
Tip: Ensure the revenue and industry classification are accurate to improve the reliability of peer comparisons and valuation outcomes.
Step 5: Selecting Valuation Type
In this final step, you’ll define the purpose of the valuation and provide any relevant notes for future reference. This step helps categorize the valuation for better record-keeping and ensures that the appropriate methodology is applied.
Selecting the Type of Valuation Project
You can choose from a range of valuation purposes, including:
Mergers & Acquisitions (M&A)
Sell Side: Valuation for companies looking to be acquired.
Buy Side: Valuation for investors or companies seeking acquisitions.
Financing & Investment
Equity Financing: Valuation for raising funds through equity issuance.
Debt Financing: Assessment for securing loans or debt instruments.
Corporate & Strategic Use
Investor Relations: Valuation for investor communications.
Strategic Planning: Business valuation for internal strategy development.
Portfolio Valuation: Used by investment firms to assess their holdings.
Regulatory & Compliance Needs
Regulatory Compliance: Ensures valuations meet financial or industry regulations.
Tax Purposes: Valuations required for taxation reporting.
Insurance Purposes: Used for insured asset valuation.
Legal & Dispute Resolutions
Litigation Support: Valuation for legal proceedings.
Succession, Inheritance, and Estate Planning: Used for wealth transfer planning.
Divorce Settlements: Valuations to assess asset division in divorces.
Shareholder Disputes: Assessing business value in ownership disagreements.
Accounting & Financial Reporting
Financial Reporting: Valuation required for accounting statements.
Purchase Price Allocation (PPA): Used in M&A to allocate the purchase price among assets and liabilities.
Impairment Testing: Assessing asset write-downs for accounting compliance.
Employee Stock Ownership Plan (ESOP): Valuation for employee stock compensation plans.
Exit & Liquidation
Bankruptcy: Valuation for insolvency proceedings.
Liquidation: Assessing asset values in business closures.
Specialized Valuations
Intellectual Property Valuation: Assessment of patents, trademarks, and proprietary technology.
Other
Unspecified: For cases where no specific category applies.
Other: Allows users to manually define a custom valuation purpose.
Adding Notes for the Valuation
You can enter detailed notes to document the reasoning behind the valuation. This helps maintain clarity and consistency when revisiting the valuation later.
Finalising the Valuation
Once all selections are made, click "Create Valuation" to complete the setup. This will generate the valuation model based on the inputs provided.
Note: Once the valuation is generated, review the outputs. You can update the company's information under the Company Details section.