Business Valuation · Inviting investment
Bringing In an Investor?
An independent valuation helps you decide how much of the business to offer, and gives you evidence to support your price when the investor pushes back.
- A defensible value before you negotiate equity
- Clarity on what a share is worth pre and post money
- Issues an investor will test, found first
What we do
We value the business before the investment, and explain how the new money changes the value of each shareholding.
We identify the assumptions an investor is most likely to challenge, such as growth forecasts, owner reliance and customer concentration, so you can prepare your answers.
Issues that often complicate the work
Pre-money and post-money value
The percentage an investor receives depends on the value agreed before their money goes in. Small changes in that figure can mean a large difference in what you give away.
Forecasts versus track record
Investors discount projections that are not supported by history. We test which forecasts are defensible.
Rights attached to the new shares
Preference rights, vetoes or anti-dilution terms change what an ordinary share is worth.
Owner reliance
If the business depends on you, an investor will want protections or a lower price.
Our approach
- Confirm the type of investment, the shares on offer and the terms proposed.
- Value the business on a basis an investor will recognise, with a cross-check.
- Show the effect of the investment on each shareholder's interest.
Principal
Principal
Erin Huang, CPA
Principal, Maxwind
Erin is the principal of Maxwind Analytics. Her background combines corporate finance, building and running businesses, and specialist valuation and forensic work.
Maxwind Analytics has advised Melbourne businesses and their advisers since 2020.
About ErinHow the engagement works
- EnquiryTell us about the matter by phone or through the enquiry form.
- Conflict and scope checkWe confirm we can act independently and agree what needs to be answered.
- RecordsYou provide the records we need through a secure link.
- Analysis and deliverableWe complete the work and explain the findings before finalising.
Fees and timing
Offered with a clear scope and a fixed fee, confirmed after reviewing recent financial statements and any term sheet.
Questions we are often asked
Should I get a valuation before talking to investors?
Ideally, yes. Knowing your defensible range before negotiations start helps you avoid giving away more equity than you need to.
Discuss your investment raise
A short conversation is usually enough to tell whether we can help and what the work would involve.
