Enterprise Valuation Report

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Please see the Accompanying Notes below the EVR spreadsheet to better enable you to follow the metrics of this hypothetical breakaway business.
The EVR spreadsheet scrolls both vertically and horizontally, depending on your view screen size.

NOTES & ASSUMPTIONS: in addition to the primary NewCo metrics of $6.5million revenue, $1billion of assets, 2 founders and 4 staff, we are inputting the following business and M&A hypotheticals:

  • The business grows at 6%.
  • The business borrows $5million at 5% on an interest-only 5 year term at time of launch.
  • The business adds a CAO to staff in year two.
  • It buys a $2million, $250million aum RIA in year3, and again in year 5. The acquired businesses transition to NewCo's 60bps ROA. (See $1.5million Tuck-in Business line item).
  • The business borrows $1 million and sells $3million of equity at time of tuck-in RIA purchases.

Note: NewCo's equity valuations and shareholder covenants are all handled by the NewCo founders working directly with Echelon Capital founder Dan Seivert.

  • In this sample EVR there is no equity partner at time of NewCo launch.
  • The price, the terms, the general methodology of bringing in debt and/or equity partners at time of launch will all be discussed at our initial meeting.
  • Total headcount goes from 6, to 7, to 10, to 13. (Four co-founders/partners, and 9 staff by the end of the 5th year)
  • We used a rather high contingency deduction (3.5%) to enable us to err on the side of caution. So many unforeseen expenses can pop up that it is helpful to have a category to capture those costs.
  • Unallocated funds in this category can be applied to employee and/or partner bonuses.
  • The "Professional services" section is highly variable and discretionary; we used an estimate with the caveat: we will discuss and explain.