Stages of the Valuation exercise

Theoretical
Valuation Description framework Stage of process

Industry Understand the mechanics of Michael New entrants

the industry and the way value Porter’s Suppliers Competition Clients
analysis is created for customers 5 forces
Substitutes

Company Get to know well the Life

company: its stage of cycle
analysis development, SWOT analysis model
Start-up Growth Maturity Decline
T
Product What is the company’s Porter’s Cost leadership iDifferentiation
strategy to win market share? Generic
positioning m Niche
Stages

Strategies Cost focus

e
Gathering of
Analysis of publicly available financial data; Check whether
financial
financial statements are clean and coherent
information

Hypothesis Build scenarios for the future development of the firm’s business
and financials. Often the top-down and bottom-up approaches are
and scenarios used

Financial Organize and manage efficiently the findings from previous stages;
Modelling Build a clean, easy to understand dynamic Mathematical output

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