The use of research to put your financial model, growth strategy, and valuation position on a firmer footing is vital when looking to attain growth capital.
Key factors to consider include:
- Can you provide the evidence and reasoning that an investor requires?
Impress investors with a business plan and financial model built on firmly evidenced assumptions.
- Model validation: Hone assumptions in your financial model, helping your business access capital for growth. Test assumptions about product pricing, asset valuation and sales expectation.
- Justify the valuation: Make use of market intelligence that supports your negotiating position during a sale or acquisition.
- Evaluation of factors boosting valuation.
We were approached by a high-growth cycling apparel business looking for funds to enter international markets.
We undertook our research and gave advice that then increased the valuation by 33% prior to a successful equity fundraise. However further analysis of their financial model suggested that additional research of cycling apparel preferences and buying habits would increase the efficacy of cash spent on the growth strategy.
Our research informed an international market entry strategy for six countries and justified a £1m valuation increase where we acted as the lead adviser for the £1m raise.