Researching Private Companies: From BURGER KING to TWITTER The Private Company Financial Data Authority The only financial research database focused exclusively on PRIVATELY-HELD companies. Prepared for the 2012 VLAPF Conference by Sam Hamadeh and Dan Gingert
PrivCo Overview • PrivCo is the first and only provider of financial and business data on major privately held companies. • PrivCo provides detailed financial and business data on over 30,000 major private companies in a single searchable source. • Data on private company investors, M&A deals, VC funding, and more.
Our Market: Over 90% of Major Corporations Are Private • There are over 150,000 firms operating in the United States alone that bring in over $10 million in annual revenues, yet business databases focus almost exclusively on the same 15,000 publicly-traded companies. • PrivCo is dedicated to producing intelligent, in-depth business and financial research on the other 90% of major business. Private Public
Why Do Companies Stay Private? Since private companies are not regulated by the federal government and thus, in most cases, are not required to regularly file with the Securities and Exchange Commission, private company financial data can be incredibly elusive. • Hostile Takeover Risk • Sarbanes-Oxley Act of 2002 • Control • Exemption from Reporting and Investor Relations Requirements • No Up-Front Cost of Going Public • Non-Disclosure of Competitively Sensitive Information
A Central Source of Private Company Financial Information is Badly Needed “PRIVATE COMPANY RESEARCH: There are many difficulties in searching for private company information. Consequently, researching private companies often requires considerable creativity…Unlike public companies, private companies are not required to file with the SEC so the information that can be found in those documents is not necessarily available for companies that are private.” - Library of Congress, Company Research Guide: Private Companies (2011) “Since private companies aren’t required to publish as much data as public companies, you probably won’t be able to find out as much about them…the results will be meager.” -Harvard Business School, Baker Library Website (2011) “All 50 states make some level of private business incorporation information available online. In many instances only limited information (such as name availability) is retrievable.” -Duke University Business School Library Website (2011)
Students, Researchers and Library Patrons Require Information on Private Companies • Private Company Valuation • Whether for tax purposes, FASB accounting requirements, preparation of a Fairness Opinion, or valuing a • company for sale, private company financials and private company M&A transaction data is crucial. • Market Research, Consulting Assignments and Competitive Analysis • Market research, benchmarking studies, and competitive analyses need to include large private companies • for a complete picture of the industry and competitors. • Venture Capital and Private Equity Deal Sourcing • Save countless time and money by streamlining VC and Private Equity deal-sourcing, rapidly compiling targets • based on micro-sector, location, revenue size, revenue growth, and even key triggering events such as CEO • change or Generational change. • Investment Banking M&A Engagements, Pitchbooks, and Deal Comps • Quickly and efficiently sift the most likely M&A buyers and IPO candidates based on recent private company • M&A deal activity in the sector, deal size, and private company target size and growth rates.
A Few Good Places to Start • PrivCo.com • SEC.gov • Patent Filings • Bankruptcy Filings • Litigation • LinkedIn • Simply Hired and Indeed
The PrivCo Product: Detailed Private Company Financials • PrivCo provides accurate annual revenues, 1 and 3 year revenue growth rates, M&A history, venture capital raised, any private equity/LBO activity, owners and ownership structure, internal org charts, whether independent or institutionally backed, and more. • For the most important private companies we even provide in-depth 25 to 100 page PrivCo Private Company Financial Research Reports with data from funding rounds, valuations, complete M&A deal histories, any IPO attempts and withdrawals, patents filed, internal memos, and more. • Private Deal Comparables: The major private company M&A deal universe, from little-reported emerging and middle-market private company mergers and acquisitions to private company LBOs and failed IPO attempts.
PrivCo’s Data Sourcing & Quality Assurance Processes: A Bird’s Eye View Our Proprietary Data Technology Human Expertise + Extensive Validation Processes PrivCo’s Accurate & Reliable Data
Major News Sources Rely on PrivCo for Private Company Financial Data PrivCo has been featured in:
Over 30,000 major private company reports The PrivCo Data Platform Advanced Searches for Private Companies + Investors Private Company Knowledge Bank: Thousands of financial + legal definitions Browse Private Companies & Private Market Investors Deals: Venture Capital, Private Equity, M&A Over 3 million data points and growing by thousands per day Quick Search by Location, Industry, and Revenue Size IPO Watch (Filed, Pending, Rumored)
Business Summary: products + services, key events and milestones Detailed ownership structure breakdown indicating type of owner (ie. venture capital firm, individual, private equity firm) PrivCo Private Company Research Reports Sections Export report financials directly to Excel with 1 click With 1 click PrivCo automatically creates a presentation ready PDF report which you can share with colleagues. Major Competitors & Comparables Key tags (Venture Capital Backed, Minority-owned etc.) Revenue Growth Rates
Key Current & Historical Revenues & Financial Metrics Accurate Private Company Financials & Charts Presentation-Ready Financial Data Charts/Graphs Export Current and Historical Private Company Financials (Directly to Excel)
Click on “Details” to explore more Deal Financials, such as: Valuations, Deal Multiples, and Legal Advisors Key Deal Data Footnotes Target information such as financials and deal multiples, and buyer information such as stake acquired and deal advisors PrivCo Mergers & Acquisition Tables
Key Venture Capital Funding Round Details (Stage, Amount, % Acquired, Liquidators, Preferences, and more) Expand the “Details” tab to view additional information such as stake acquired, board seats demanded, valuation, etc. Click on hyperlinks to open PrivCo Private Investors Profile for investor contacts and firm’s deal history (See following slide for PrivCo Investor Profile) PrivCo VC/Funding Activity Table
Investor records including contact information to key executives and private company deal histories on over 7,500 private equity firms, venture capital firms, angel investors, and university incubators, with over 25,000 key executives with direct emails verified. PrivCo Private Investor Profile Investor Overview including type, location and preferred stage of investment Investor profiles including contact information to key executives and direct verified emails for networks, co-investors and collaborators
Location & Distance Precise Employee Size Screening Advance Private Companies Search: Step One – Enter Criteria Search by Privco’s exclusive Private Company Industry Taxonomy. Hundreds of established and emerging industry sectors Privco’s Exclusive 1 and 3 year Revenue Growth Rate Search Search PE/VC Backed only – or – exclude to find Independent (not yet backed) Private Companies
All key metrics ready for you: lists, excel charts, sorting and more Advance Private Companies Search: Step Two – Export Results to Excel in 1 Click Search results can be exported to Excel with 1 click. Export includes all financials and business information, making it easy to perform an analysis, compare and integrate PrivCo’s financials into your own existing data sets.
Hundreds of Key Private Company Financial & Legal Topics explained PrivCo Knowledge Bank PrivCo’s Private Company Knowledge Bank is PrivCo’s financial educational resource written by the PrivCo team to help navigate and comprehend the ins and outs of the private market. We constantly update the PrivCo Knowledge Bank to include more details and case studies. And More… Thousands of private company and deal-related terms defined
Unlimited Use Subscription Model • PrivCo data is available to corporate clients through a flat annual rate: an easy all-you-can-eat model • School-Wide Access: All your institution’s students and staff will have full access to PrivCo data (no “number of seats” limitations) • PrivCo costs a fraction of the prices charged by major stock-research databases
Major Institutions Rely on PrivCo for Private Company Financial Data Academic & Library Institutions Include: Corporate Institutions Include: