Financial and valuation analysis for a cloud solutions company
Summary
ST strategy helped the company understand its financial position and its value.
A company that builds modular cloud management solutions must identify the segments where it wants to win customers. In the case of CloudSolutions*, the focus is on public administrations and private companies, mainly sports and health centres.
ST strategy helped analyse the company’s financial situation, carry out a valuation and clarify how to approach the entry of a new investment partner into the project.
Cloud solutions
Valuation
Financial plan
The full story
Opportunity
Most companies that build tailored solutions have a very significant R&D component. This means there is a considerable time lag between the expenditure or investment made and the moment the product reaches the market and gains relevant traction. In addition, charging the price needed to recover the prior investment is always a challenge, as the market is highly competitive.
Once the model and its prospects had been analysed, work was done on the most appropriate financial model and on the valuation of the company.
Recommendations
ST strategy made several recommendations within the framework of the analysis. Some turned out to be quick wins that generated a rapid impact. The following stand out:
- Profitability analysis of each of the company’s products.
- Financing model for project development, taking timelines into account.
- Financial plan with the defined variables.
- Approximation of the company’s value.
* The confidentiality of our clients is a priority of the company. Although we have changed their names, the information is real.