The Art of Valuation

Hosted by NACO Academy and the Capital Investment Network, “The Art of Valuation” is a workshop designed for investors to learn more on how to valuate early stage investments. This workshop will be led by Pieter Dorsman.

Overview

Valuation is the key term in a term sheet that determines how much each party owns once an investment is made. It also sets the stage for the value of future financings and an eventual exit, as well as related issues such a pricing stock options, debt conversion etc.

Learning Objectives

By the end of this module the student will be able to:

• Understand most valuation approaches and apply these in deal situations;
• Negotiate the value of an investment;
• Ensure that a term sheet deals with valuation in a satisfactory manner to both investor and founder

Prerequisites

Students should have been exposed to and preferably have direct experience as an Angel investor.

Pedagogy

A mix of panel discussions, case studies, and instructor-led group discussions will predominate the methods used. Students may wish to bring a term sheet or relevant case study from a recent deal.

Detailed Topics

This module will cover:

• Common valuation practices in Canada and the US;
• Pre-revenue valuations;
• The art vs. science discussion;
• Negative outcomes if the agreed valuation is too high or too low;
• Role of the founders/entrepreneurs in setting the right valuation;
• Role of the angel investors in setting the right valuation;
• Risk mitigation strategies (convertible structures, price protection);
• Some notable schools of thought on valuation
• Market trends
• Case studies that will underline the pitfalls of setting a valuation either too high or too low

Date: May 22, 2019

Location: Rialto Hotel

SPACE IS LIMITED.

Time: Noon – 4 pm

Cost: $50

Lunch and course workbook included.