Why should you evaluate your option pool

and educate your employees?

3 Key Reasons

1. Employees are yor #1 asset

Your employees are your best asset . The value of your company depends on their

work . They are the value

creator of the company.

2. Consider their financial knowledge

As financial laymans, risks taken by employees are huge regarding their financial knowledge & portfolio diversification.

3. Reward their loyalty

The employee pool is dedicated to those who stay. The grant mechanism with cliff and vesting

period « securise »

the trust.

 

What is the link between risk and valuation?

Place your bets.

In Finance, the risk premium is the extra return for investors who take the risk to buy an asset.

Consider two similar bonds, issued by the same company, one with some preferential rights or clauses, the other one without, consequence - the price will be lower for the bonds with no additionnal rights. Thus, the asset price is defined by the risk taken by investor. Share class of a company are very similar to bonds with preferential rights and clauses.

At Ekwity, we truly believe that the risk taken by employees is far much higher than for professionnals investors. We consider their financial and professionnal investment in the company as a priceless asset. Their knowledge, the absence of preferential rights and fiidelity should conduct to a specific valuation.

Why should you work with Ekwity ?

Sharing value is complex

We provide strategic support to master and explain the mechanism between HR, finance, legal and taxation.

ESOPs are a strategic tool for startups: to attract and retain the best talent.

There are a multitude of stakeholders to manage: lawyers, accountants, auditors, shareholders

and most importantly

employees.

What support does Ekwity provide?

A multi-lateral approach

Diagnostics and Benchmarks:

Financial analysis
First Valuation parameter definition

General Analysis (legal, shareholding structure, founders ...)

Design and Modelization:

Economic research
Sectorial research
Computation of Ekwity proprietary adjustment variable

Communications and Training:

Ekwity’s Valuation methodologies
Ekwity Discount methodologies application

Final Report with ESOP Valuation

For a tailor made solution,

please contact our team.

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