Valuation Support

DCF models, trading comps, precedent transactions, VC methods, and sector-specific valuation metrics.

Executive Summary

Valuation is where art meets science. Whether you're building a DCF, screening comps, or applying sector-specific methods, precision and consistency matter. Our valuation support team delivers rigorous, auditable models and analyses across multiple frameworks—so you can defend your numbers and make confident investment decisions.

We work alongside your team to build, maintain, and refine valuation models that reflect best practices and adapt to changing market conditions.

Who This Is For

Investment teams needing standardized valuation frameworks

Private equity and venture capital firms evaluating deals

Corporate development teams assessing M&A targets

Equity research analysts building coverage models

Portfolio managers requiring ongoing valuation updates

Problems We Solve

Inconsistent methodologies

Different analysts using different assumptions and frameworks, making comparisons difficult

Time-intensive model builds

Building complex DCF or comp screens from scratch pulls you away from strategic analysis

Outdated or stale valuations

Models that aren't maintained regularly lose accuracy and credibility

Sector-specific complexity

SaaS, fintech, marketplaces, and other sectors require specialized metrics and approaches

Lack of audit trail

Unable to defend assumptions or trace back valuation changes over time

Capabilities

Discounted Cash Flow (DCF)

  • • Free Cash Flow to Firm (FCFF) and Free Cash Flow to Equity (FCFE) models
  • • Reverse DCF to back out implied growth expectations
  • • Sensitivity analysis and scenario planning

Market Approach

  • • Trading comps: peer group selection, normalization, and multiple analysis
  • • Precedent transactions: M&A deal screening and premium analysis
  • • Sum-of-the-parts (SOTP) valuation for diversified businesses

Private/VC Methods

  • • VC method: pre-money/post-money calculations and exit scenarios
  • • First Chicago method: probability-weighted scenario analysis
  • • Scorecard and Berkus methods for early-stage startups

Alternative Lenses

  • • LBO-implied value: reverse-engineering sponsor returns
  • • Residual income and Economic Value Added (EVA) models
  • • Real options valuation when uncertainty is path-dependent

Sector-Specific Metrics

  • SaaS: ARR, NRR, CAC payback, LTV/CAC
  • Fintech: TPV (Total Payment Volume), take rate, active users
  • Marketplaces: GMV (Gross Merchandise Value), take rate, liquidity metrics
  • Consumer & Gaming: ARPU (Average Revenue Per User), DAU/MAU, retention cohorts

Approach

1

Scoping & Framework Selection

We understand your investment thesis, sector context, and data availability to select the most appropriate valuation methods and metrics.

2

Model Build & Validation

We construct rigorous, transparent models with clear assumptions, sources, and audit trails. Every model is peer-reviewed before delivery.

3

Ongoing Maintenance

Valuations aren't static. We refresh models on your cadence—quarterly, monthly, or event-driven— ensuring your numbers stay current and defensible.

4

Sensitivity & Scenario Analysis

We stress-test key assumptions and provide scenario-based outputs so you can see the range of outcomes and understand what drives value.

Deliverables

DCF models (FCFF, FCFE, reverse DCF) with detailed assumptions and sensitivity tables

Trading comps and precedent transaction screens with peer benchmarking

VC method, First Chicago, or scorecard valuations for private companies

LBO-implied value and residual income models for alternative perspectives

Sector-specific dashboards (ARR, NRR, TPV, GMV, ARPU, etc.) with historical trends

Valuation summary memos explaining methodology, key drivers, and recommendation

Example Outcomes

Growth equity firm: Built First Chicago method valuation for Series C SaaS company, incorporating ARR growth scenarios and NRR assumptions. Model supported $150M investment decision.

Public equity team: Maintained DCF and trading comps for 40-name coverage universe, refreshing quarterly and after earnings. Standardized methodology reduced model review time by 60%.

Corporate development: Created sum-of-the-parts valuation for multi-segment target, including precedent transaction analysis. Supported M&A committee recommendation and negotiation strategy.

Build Defensible Valuations

Let's discuss how we can support your valuation needs—whether it's a one-off model or ongoing maintenance across your portfolio.

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