Attracting Expansion Capital
Attracting Expansion Capital using an Independent Revenue Evaluation (IRE) is designed for business owners seeking investor capital to fuel growth.
Why would a business owner want to conduct an independent revenue evaluation?
When attracting investors for the business, and capital, an owner will be asked to submit a business plan that includes long-term sales projections. But additional value might not be obvious and needs to be supported with measures of customer health (e.g., retention), plus other indicators such as product innovation and growth.
Who would value an independent revenue evaluation ahead of an investment?
First and foremost, the business owner: an Independent Revenue Evaluation can significantly increase the chances of a significant capital raise because the business will be viewed in a different light than simply on the basis of standard financial measures. Second, an angel investor, investment banker, or a VC will discount the financials substantially – or dismiss them entirely – knowing that the business owner is emotionally invested in the outcome. They will review the financials, and the strategic plan for the business, very carefully as part of their decision-making process. This reduces the business owner’s chances of a significant capital raise. But if other persuasive evidence can be presented that indicates that the business is in superior shape, and is poised for better growth in the future, these doubts can be addressed.
Our Independent Revenue Evaluation approach evaluates revenue potential in a systematic and independent manner.
- We assess overall financial performance in the absolute and relative to peer group performance.
- You may have a future offering that enhances the chances of a capital raise.
- We employ a variety of tools to estimate prospects for growth, forecast volume, and share.
- We profile relevant products, brands, and services to assess your competitive position.
- We combine our findings to provide an unbiased estimate of revenue potential.
- We are available to work with you on an ongoing retainer basis to provide guidance and market intelligence for the business.
How much is an independent revenue evaluation worth vs. the capital you are seeking?
Will an Independent Revenue Evaluation improve your chances of a capital raise? Yes, we know it can. Let’s have a conversation about what this could do for you and why this can work.