Know your business’ worth - quickly and affordably
JOHANNESBURG – It’s affordable, accurate, rapid and launched at an opportune time, when SME owners might need a business valuation tool to sell their business or raise capital.
A new fintech company, EquityMaven is offering detailed, investment banking-style valuations online, for a fraction of the price.
Traditional company valuations can be sluggish, taking months to complete, and they’re prohibitively expensive, costing up to $10 000 (R184 000).
The Cape Town startup’s valuations cost around R1 750 a month, and are immediately downloadable. The tool is available on a subscription basis as valuations are typically event-driven: Processes usually involving months of negotiations and changes in financial forecasts and assumptions.
Founder Sean Rule, an investment banker, says the Covid-19 pandemic has made EquityMaven’s service offering more relevant as owners and business managers are under increasing pressure to put a value to their businesses.
“Over the past two decades spent working in investment banking, I identified that there was an urgent need for a more affordable and rapid valuation tool in the market. And current circumstances have made this even more relevant.”
EquityMaven’s reports can be revised as often as the client requires, and they’ll immediately be able to see the effect on the valuation if inputs change. The better the quality of information supplied, the better the valuation report.
The EquityMaven tool benchmarks key performance indicators (KPIs) of a business against global industry averages, leveraging data across more than 400 industries in over 120 countries and more than 50 currencies, which allows users to evaluate their performance relative to their peers. It also allows users to make corrections to underperforming KPIs, which should result in increased valuations.
EquityMaven partner, Gareth Mountain, a financial services entrepreneur, says the lockdown has placed a massive focus on the economy and many SMEs are now reassessing their businesses’ values. But traditional valuations are “horrifically expensive” and can take months to complete.
“Our tool gives you a comprehensive report based on both an income and market approach. If you need to get a valuation, this tool gives you that first view, with strong analytics, that could help you kickstart a negotiation process,” he explains.
“We are looking for partners who would like to monetise EquityMaven within their distribution network. Simply put, if any of your users/subscribers bought a valuation, we would pay you. As it is a digital process, it is simple and easy to track.”