Rapidly growing companies are frequently challenged to justify premium valuations as their existing public company comparables, if any, are characterized by:
- Slower Growth Rates,
- Differing and More Mature Business Models & Markets, and/or
- Meaningfully Different Home Markets (e.g., India or China vs. the United States).
Having founded Merrill Lynch’s Asia-Pacific Internet Investment Banking Group, David Williams pioneered the positioning and pricing of companies such as Netease (NASDAQ: NTES) using methodologies which capture the far faster growth rates of such emerging players relative to their US counterparts.
For US companies with unique business models as well as clients in foreign markets, Williams Capital Advisors is brought in by management teams and venture-backers to position companies prior to launching the IPO process. We work with management teams to:
- Perform & evaluate varying scenario analyses,
- Prepare both traditional valuation analysis as well as proprietary models developed to measure traditionally uncaptured value (resulting from exceptional growth rates well into the future), and
- Develop alternate selling theses, ultimately winnowed to a positioning which best portrays the company based on input from late-stage private sponsors and public institutional investors.