Valuation Readiness: The Founder's Checklist

Why Valuation Readiness Matters

Getting a valuation isn't just about receiving a number. It's about receiving a defensible number that you can explain and stand behind. The quality of that valuation depends significantly on how prepared you are going into the process.

Companies that come to us well-prepared typically see:

• Faster turnaround (days saved on back-and-forth)
• More accurate results (better data = better analysis)
• Smoother due diligence (investors appreciate organized founders)
• Lower costs (less time spent chasing information)

The Three Pillars of Readiness

1. Financial Documentation

Your financials tell the story of your business in numbers. At minimum, you should have:

• Historical financial statements (Income statement, balance sheet, cash flow) for at least the past 12-24 months, ideally 3 years if available
• Monthly management reports showing revenue, expenses, and key metrics
• Year-to-date financials for the current period

For projections, we need:

• Revenue forecast for 3-5 years with clear assumptions
• Expense projections tied to your growth model
• Key driver assumptions documented and justified

2. Corporate Documentation

Ownership matters enormously in valuation. Make sure you have:

• Cap table that's fully diluted and up-to-date
• Option pool details including grants, vesting schedules, and strike prices
• Any convertible instruments (SAFEs, convertible notes) with terms
• Shareholder agreements and any special rights

3. Business Context

Numbers without narrative are just numbers. Help us understand:

• Your business model and how you make money
• Key customers and revenue concentration
• Competitive landscape and your positioning
• Growth drivers and what's fueling expansion

Common Readiness Gaps

Gap 1: Projections Without Assumptions

We often receive projections that show hockey-stick growth but no explanation of how that growth will happen. Your projections should connect clearly to marketing spend, product roadmap, and team growth.

Gap 2: Outdated Cap Tables

After multiple funding rounds, SAFEs, and option grants, cap tables get messy. Before a valuation, reconcile your cap table and ensure it reflects all equity grants, convertible instruments, and promised shares.

Gap 3: Missing Contracts

Key contracts affect value. Have summaries ready showing major customer terms, revenue concentration percentages, and any change-of-control provisions.

How to Get Ready in One Week

Day 1-2: Gather financial statements and organize them by period.

Day 3: Update your cap table and option pool records.

Day 4: Draft a 1-page company overview if you don't have one.

Day 5: Create or update your financial projections with documented assumptions.

Day 6: Compile a list of key contracts and customer concentration.

Day 7: Review everything and identify gaps to flag.

Next Steps

Ready to start? Download our complete readiness checklist or book a discovery call to discuss your specific situation.