Startup Advisory Services
Duff & Phelps works with innovative and disruptive early-stage companies around the world, providing startup advisory services related to valuation, business plan/financial model review, and preparation of pitch documents and deal support, including vendor due diligence.
Our team has worked with several early-stage companies, some of which have grown to become unicorns and market leaders. Our team members have a diverse and significant track record working with entrepreneurs.
We Understand the Nuances Pertaining to Early-stage Companies
- Presence of complex capital structures, ratchets, liquidation preferences, tag along and drag along rights and other terms that are common in early-stage company investments
- Implication of these terms for the relative value of various layers of preference and equity shares within the capital structure
- Knowledge of how to apply Black Scholes, binomial lattice and Monte Carlo simulation methodologies as well as the appropriate circumstances in which to apply these methodologies
Our fee structure is suitable for most emerging growth companies and angel-funded startups.
The Duff & Phelps Advantage
- Largest and growing network of PE and VC clients globally
- Rich experience and understanding of early-stage companies and their nuances
- Global firm with operations across 25 countries
- Willing to invest in a long-term strategic relationship through proactive service and competitive pricing
Valuation Advisory Services
- Preparation of pitch book/information memorandum
- Financial modelling/financial model review
- Valuation of intellectual property (IP)
- Employee share-based payments valuation
- Other regulatory, tax, reporting and dispute advisory services
Business Intelligence and Investigations
- Market entry support
- Competitor intelligence
- Cyber security and resilience
- Assistance with structuring of ESOP plans
- Financial impact analysis
- Tax implication of ESOP plans
Transaction Advisory Services
- Buy-side diligence – Quality of earnings/cash flows/working capital analysis, etc.
- Sell-side diligence – Run rate analyses, independent evaluation of recurring EBITDA, etc.
Startup Advisory Case Studies
Case Study 1: Equity Valuation for Investment in a Battery Technology Startup
A major electrical appliances manufacturer was evaluating a strategic investment in a startup operating in a technology battery manufacturing space. The startup had developed a prototype of the product and testing was underway. We supported the investor in making informed business decisions with regards to its proposed investment in the startup. Our valuation not only considered traditional approaches to value but also how VCs typically value startups using a combination of quantitative and qualitative aspects.
Case Study 2: Assistance in IM Preparation and Presentation to the Board of an Insurance Startup
The startup was looking to raise funds for future growth. We helped the client prepare the information memorandum (IM), which included detailed industry and company analyses. In addition, we streamlined the IM to be more accessible and visually appealing to prospective investors. We also presented our findings to the board; this included our estimate of the value of the company under various growth and risk scenarios.
Case Study 3: Business Valuation for Fundraising by a Startup in the Coworking space
The startup designs and manages workspaces to create productive and flexible working environments. The company was contemplating raising funds to support its expansion. We helped the client by critiquing its business plan and carrying out detailed benchmarking against industry parameters. We also provided an estimate of the equity valuation under different probable growth scenarios to arrive at an indicative range of values for negotiation with potential investors.
Valuation and consulting for financial reporting, federal, state and local tax, investment and risk management purposes.
Kroll Business Intelligence and Investigations
Providing firms with investigative expertise to help resolve conflict.
Transaction Advisory Services
Seamless analytical advisory through the deal continuum, from transaction origination to closing.