How to value your tech business workshop
We’re excited to be hosting a valuation workshop for large and small company executives as part of London Technology Week at 8am on Tuesday 21 June in central London.
Valuation is an opaque topic. Investors generally take a dim view of executives telling them what their company is worth but that does not mean you should not try to understand your valuation. Having a feel for your reasonable valuation range and what drives that valuation will help you better understand investors and their questions.
This has multiple benefits: you save you and the investor time, you actually answer the question fully, and you show the investor you are on top of your numbers. The latter is important as whether you are a public or private company, your job is to properly allocate the capital entrusted to you by your investors.
So what will we be discussing? We’ll start with a look at long term price-earnings ratios over time – while much maligned, no-one can deny that share prices in the long-term track the earnings of your business. Yet most executives don’t really have a good feel for the PE range of the industry they are in. Early in my career a wise fund manager said that whatever I wrote as a research analyst about a company had to tie into what the future earnings growth of that business would be.
Most fund managers, it turns out, are not particularly wise (see current press on active vs passive underperformance, a topic we’ll be writing about here in future). So we’ll look at some of the fads and dubious valuation advice that some short term investors often offer to executives.
We’ll then move down the liquidity curve to private valuations and how to value a business that isn’t making any money yet. We’ll also take a look at some public VC backed company valuations and explaining why they may not relate to how the company might ultimately be valued if it floated on a stock market.
Please do forward this via social media or email to anyone who might be interested in attending.
21 June 2016, Central London
8am registration, 8.30-9.30am workshop, 9.30-10.00 networking.
Registration and location detailed here.
We are making a small £10+fees/VAT charge to minimise no-shows. Any profits will go to the UNHCR Syria appeal.
Oakhall was established by award winning equity research analysts to help CEOs and CFOs better analyse their own business and strategies, and articulate them to stakeholders. Founder Andrew Griffin spent almost two decades as a technology equity analyst, ultimately as managing director of European technology equity research at Bank of America Merrill Lynch, before working in investor relations, corporate development and market intelligence for a UK listed software company.