Companies wanting to access capital through equity crowdfunding are required to produce a third-party valuation of their business and provide a price for the securities offered as well as the method used for determining that price. Navocate Business Sales + Acquisitions is sponsoring a free webcast to discuss their Valuation Model developed exclusively for companies wanting to access capital through crowdfunding.In order to crowdfund, a company (start-up, pre-revenue or revenue producing) must be incorporated. In addition, a Company (referred to as an “Issuer”) must disclose how the securities offered are being valued and provide examples of methods for how such securities may be valued in the future.
Navocate provides Crowdfund companies with an affordable business valuation and securities pricing report as mandated under Title III (Crowdfunding) of the JOBS Act. Navocate’s proprietary valuation model uses three methods to analyze both pre-revenue and income-producing companies:
1. Sell-Side (historic view) — Navocate analyzes your financial statements (or pro formas and forward-looking financials for pre-revenue companies) to understand your business’s performance relative to a database of over 650 industry sectors.
2. Buy-Side (future view) — Navocate next analyzes how a potential investor would evaluate your company relative to deal structure, cash flow, risks, and ROI.
3. Soft-Side — Finally, Navocate models soft parameters that can have exponential effects on your company’s success (either positive or negative), such as management structure, financial controls, market opportunity and growth rate, and overall risk factors.
The result: Navocate’s valuation and securities pricing report provides you with a thorough valuation of your business, our assessment of an appropriate stock price range, and an explanation of the methodologies and rationale behind the analysis—in an affordable, easy to read document.
The intent of the JOBS Act is to provide companies access to capital via crowdfunding to grow their business and create jobs. If you are an Issuer wanting to learn more about Crowdfunding, click this button to register now for “Get Funded Through Crowdfunding,” June 12th, 1 pm Eastern time:
When asked ‘How did you hear about this webcast?’ during the registration process, please select ‘Paul Winkle’ in the drop-down menu.
*Crowdfunding was signed into Law April 5th, 2012 by President Obama. However, it will not be legal under the federal securities laws until the U.S. Securities and Exchange Commission (SEC) adopts rules to implement a new exemption that will allow crowdfunding. In addition, the SEC has latitude to prescribe additional rules and requirements.
Navocate provides Business Sales and Acquisitions services for Entrepreneurial Companies with revenues from $3M - $30M. Specifically, Navocate focuses on the market segment above business brokers, and below investment banks. For more information please visit www.navocate.com.
Tags: valuation, Crowdfunding, valuation model
No comments:
Post a Comment