Business Modeling & Valuation

We are frequently hired to validate or amplify a client's business model or to build it from scratch. Client models are typically designed from an internal vantage point. In validation work, our role is to approach the model—and the assumptions underlying it—from an external perspective, whether that of a competitor, an investor, a regulator, a visionary or simply an industry "gray hair", often a combination of the above.

We apply our validation and model development perspective using a variety of techniques, depending on the client situation and requirements. Some of these techniques are

• Overall checks of the financial model for accuracy, consistency and integration
• Market forecasting to confirm or challenge revenue projections
• Detailed analysis of pricing assumptions
• Benchmarking of costs using vendor and/or operator interviews
• Scenario building and case studies of competitive market dynamics
• Assessment of the potential effects of new technologies

Overall, we have completed over 100 model-building and validation cases and related assessments, ranging from formal due diligence for new business financing to license bid preparation work (see License Bidding) to new product line evaluations. We have also completed business and asset valuations of cable TV operations, TV programming rights, cellular businesses, and telecom equipment and related software patents, copyrights and trade secrets.