Holt Capital Perspective

The Situation A growing software company required a valuation for prospective investors and buyers. Both historical financial information and projections that included new products and market niches had to be included. Company records were not perfect but mostly good bookkeeping and accounting records were available.

The Solution Holt Capital examined the facts of the company using the company's records, market assessment, and valuation of intellectual property. Using multiple valuation approaches proved that the best method for setting the value was a discounted cash-flow model. The valuation not only provided a starting point for discussions with prospective investors, it allowed the entrepreneurs to clearly state the company’s value to investors and buyers. The valuation also established value for minority shareholders, answsering one of the investors' objections. The value of the company was far more than management and investors had realized, and provided them with a new vision about their company and its future.