Assessment & Evaluation
The assessment is the first step to raise fund. This requires the issuer to provide all critical data (NDA) of company business and track record to start the full evaluation.
Term sheet of dealflow & Establish dealflow to deal terms
To establish a detail term sheet demands clarity of investment and the understanding of business progress on fund raising. Term sheets support clarity for investors and a good reference to remind issuer on what they have committed.
This vital understanding from issuer to investor helps to define what’s in it for all in progress of investment. It render clarity of milestone set towards end goal and cater for investment guidelines and assurance.
Deal validation is a process of developing opinions of the deal flows and health of deal from issuers. As issuer or business owner, you have decided that Sinwattana is the best fit for your fundraising exercise. The requirement to submit full accurate documentation aligned to ECF regulations is the first step. How to be issuer. How to be issuer.
Due diligence checklist
The terms and conditions for required documentations to provide clarity and transparency for company validation is vital to serve all parties. Business must be in operations with a proven track record.
Deal Terms to Diligence Memo
On all clarifications and qualifications with issuers via documentations, interviews, meetings review and industry research; it is of best interest for investors to qualify and quantify the investment by their own assessment. The information shared is a reference point and not a guarantee.
Objective of Valuation
This is a vital process and exercise that demand clarity of documentations for use to measure the economic value of the shares price; in respect to provide investors a fair valuations with all needed justifications.
Mergers and Acquisitions: M&A
Merger (consolidation of another entity to take competitive position in industry) and acquisition (take ownership of another entity) may demand the understanding of the industry in order to tailor such business transaction to happen.
A transaction of such may means strategic or financial buy and typically the synergies matters; therefore issuers who are eyeing for such exit has lots to work on to win strategically to secure traction from target companies.
IPO (Stock market listing)
On success of meeting all conditions and growth of company on Sinwattana equity crowdfunding platform at end of three years, we continue our work with issuers to exit them on the choice of IPOs. Gone through the past years of pre-IPO preparation on the platform, the underwriting process will be swift and clear. Supporting issuers and exiting them is our honor.
Investment (Private equity / Venture capital)
At end of three years on Sinwattana equity crowdfunding platform, issuers can opt to continue their journey on private ownership run by existing shareholders.
Valuation process will be carried out by our internal team. External valuation report can be conducted at cost of investors or issuers if amount to raise exit USD5mil / THB150mil. Common method used are as follows:-
Discount Cash Flow (DCF)
A discounted cash flow (DCF) is a valuation method used to estimate the attractiveness of an investment opportunity. DCF analysis uses future free cash flow projections and discounts them to arrive at a present value estimate, which is used to evaluate the potential for investment. If the value arrived at through DCF analysis is higher than the current cost of the investment, the opportunity may be a good one.
Market multiples methods
The multiples approach is a valuation theory based on the idea that similar assets sell at similar prices. This assumes that a ratio comparing value to some firm-specific variable (operating margins, cash flow, etc.) is the same across similar firms.
Economic value added (EVA)
Economic value added (EVA) is a measure of a company’s financial performance based on the residual wealth calculated by deducting its cost of capital from its operating profit, adjusted for taxes on a cash basis. EVA can also be referred to as economic profit, and it attempts to capture the true economic profit of a company.