Purchase price allocation (PPA) is the method for allocating the acquisition cost to assets acquired and liabilities assumed, with any residual amount recognized as goodwill or a bargain purchase gain. While the underlying objective of PPA is broadly consistent across accounting frameworks, the application can differ meaningfully between US Generally Accepted Accounting Principles (GAAP) and …
As private companies scale from early-stage startups to venture-backed enterprises, their compliance obligations evolve dramatically. What begins as informal updates to angel investors can quickly transform into rigorous reporting requirements that rival those of public companies. Understanding these requirements early helps founders avoid costly mistakes, maintain investor confidence, and position their companies for successful funding …
For two analyses that support completely different purposes, fairness opinions and valuation reports have a lot of common elements. They use the same inputs, such as financial histories, projections, capital structures, and market trends. Even methodologies such as comparable company analysis and the discounted cash flow (DCF) method are common between the two. So, what’s …
Rule 701 allows companies to issue stock-based compensation without triggering the need to register with the Securities and Exchange Commission (SEC) under the Securities Act of 1933. This is a very important exemption since the US regulatory framework places immense reporting responsibilities on registered companies. As an ESOP administrator, to qualify for Rule 701 benefits, …
New Enterprise Associates (NEA) has maintained its position as a leading investor across multiple sectors, making it one of the world’s famous venture capital firms. Founded in 1977, NEA has built an impressive track record with over 280 portfolio companies reaching IPO and 99 achieving unicorn status. The firm’s portfolio includes leaders like Cloudflare, Coursera, …
As we approach 2026, founders must prepare for critical tax filing deadlines, missing which could trigger penalties. To ensure that businesses with complex structures and sole proprietors have ample time to file tax forms, the Internal Revenue Service (IRS) has different tax filing deadlines for businesses with different corporate structures. So, C-corporations and sole proprietors …
Priorities spiraling out of alignment is a reality that most business partners don’t anticipate or underestimate. When this occurs, stakeholders may consider buyouts as a solution. This helps preserve business relationships and avoid prolonged legal disputes. However, when buyouts are not feasible or excessive, some may resort to manipulation of ownership. From aggressive stock-based compensation …
Private equity firms may find relief in the fact that global dry powder has steadily declined since 2023, reaching $2.52 trillion by July 1, 2025. While global M&A volumes fell 9% in the first half of 2025 on a year-on-year (YoY) basis, the stabilization of tariffs and trade policies could pave the way for renewed …
Seasoned investors are aware of the importance of the dilution-related insights gained through cap table solutions. However, the benefits of such software to a startup founder are arguably much more significant. Not only does this software enable real-time ownership tracking, but it also simplifies stock option management and tax compliance. It can also catalyze the …
When selling your business, deciding between SDE and EBITDA can significantly impact your valuation. While Main Street deals love Seller’s Discretionary Earnings for its raw, owner-centric truth, Wall Street speaks fluent EBITDA for its clean, scalable story. Choose wrong, and you’ll either confuse sophisticated buyers or undersell to local competitors. Choose right, and you’ll position …
The US Series A funding landscape looks dramatically different from the peak years of 2020-22. In 2025, Series A funding has reached $23.02 billion through October, a significant decline from the $58.17 billion record set in 2021. Series A Capital Deployment: A Decade in Review Note: Data for 2025 is as of 31st October Founders …
Tech companies, especially software-as-a-service (SaaS) companies, have been investor favorites for decades and for good reason. These companies often create a new niche for themselves and are highly scalable. In this article, we will take a close look at the gross profit margins of such companies, one of their key differentiators in the eyes of …
Qualified Small Business Stock (QSBS) tax benefits under Section 1202 represent one of the most powerful wealth-building opportunities in the tax code, but are companies actually leveraging them? We surveyed founders across industries to find out how they’re structuring for QSBS tax benefits. The data reveals that QSBS tax benefits aren’t just about savings, they’re …
In Q3 2025, the total global VC funding reached $97B, marking the fourth consecutive quarter exceeding $90B and a robust 38.6% year-over-year increase. Q3 was characterized by extreme capital concentration with mega rounds ($500M+) capturing more than 30% of all funding and just 18 companies securing one-third of total capital deployed. AI dominated with $45.1 …
Distressed debt can be an investment opportunity that allows you to effectively beat the market. In 2024, Brazil had a real interest rate of 35.1%, greater than the returns of the S&P 500, the Nasdaq, and the Nasdaq 100. With such returns, you could more than 20x your investment portfolio in just 10 years. The …
For early-stage startups, setting up a cap table might not feel as pressing as product development or fundraising. Yet it is one of the most critical documents you can create. According to the State of the Cap Table Industry 2024, almost 90% of startups use equity-based compensation and update their cap tables in real-time to …
In 2022, US IPO activity plummeted by 83% and has yet to recover to the levels seen in 2021 or even 2020. However, the surge of IPOs in those years has distorted expectations of what ‘normal’ looks like for the market. Looking back over two decades, the median annual number of IPOs since 2000 is …
The general consensus is that uncertain market conditions have held back a number of companies from going public. While the number of initial public offerings (IPOs) has risen steadily since 2023, activity remains far below the highs of 2020 and 2021. Due to such market conditions, many companies have ended up with elongated IPO timelines. …
When Steve Jobs and Steve Wozniak were scaling Apple Computer beyond their garage operation in 1978, they turned to a Small Business Investment Company (SBIC) that provided $500,000 in startup capital. This crucial funding helped launch the revolutionary Apple II computer and transformed a two-person startup into one of the world’s most valuable companies. Small …
Apple Inc. is one of the top five IT giants in the United States with a market capitalization of $3.445 trillion as of August 2025. The company’s ownership structure is characterized by institutional investors, with over 60% of shares held by major investment firms, while retail investors maintain a substantial 51.43% stake. Apple’s capital structure …
