Blog Category: Business Valuation

I have been in the private equity and valuation space long enough to see the same question surface over and over again: “How do we unlock liquidity for private companies?” It’s a fair question, because liquidity is the lifeblood of any market. Without it, capital is harder to raise, employees have fewer opportunities to realize … Continued

Private companies often lack real-time, quantitative feedback on their performance because they do not have publicly quoted share prices. This can strain stakeholder communication, as entrepreneurs must devote significant effort during periodic reviews to justify their valuation estimates. Lack of a consistent valuation history also makes it difficult to substantiate growth projections, creating additional hurdles … Continued

In 2025, the biotech sector is rapidly gaining momentum, following closely in the footsteps of artificial intelligence (AI), with $4.37 billion raised from 26 large rounds. Investors seem particularly interested in biotech startups leveraging AI for drug discovery. Leading the pack are Pathos AI and Truveta, both of which raised over $300 million and achieved … Continued

Why Some Companies Make Money Better Than Others? A construction company makes 10 10-cent profit for every dollar it owns. A biotech company loses 42 cents. This isn’t about good management versus bad management. It’s about how different types of businesses work. Some industries need massive factories and equipment to operate. Others run on laptops … Continued

Whether you’re looking at the market for next-generation growth or reliable dividend streams, understanding how to measure value is important. By analyzing metrics such as Price/Earnings to Growth and Dividend Yield (PEGY), investors can look beyond basic ratios and identify sectors that have long-term growth opportunities.  In today’s landscape, where valuation, growth, and income all … Continued

Trust-based estate planning remains one of the most effective tools for protecting wealth, minimizing tax liability, and transferring assets to future generations. Its success often hinges on a critical factor: accurate asset valuation. Although recent legislation has made the current federal estate and gift tax exemption of $15 million per person permanent, many families are … Continued

Recently, OpenAI became the world’s second-most valuable startup after a $40 billion funding round, reaching a valuation of $300 billion. In 2025, we are no strangers to such headlines regarding AI startups. For instance, Safe Superintelligence reached a valuation of $32 billion without even having a product. With such strong hype surrounding the sector, keeping … Continued

Throughout a startup’s lifecycle, its business model, cash flows, and nature of operations keep evolving. Initially, many startups focus primarily on research and development. As they grow and reach key milestones, they begin generating regular revenue, attracting investor interest, and expanding operations to include product development, customer acquisition, and marketing. By the latter stage of … Continued

Imagine trying to price a rare artwork without knowing what similar works have sold for—every guess feels like a shot in the dark. In the fast-moving world of SaaS, where recurring revenue and growth potential are prized, entrepreneurs, startups, and investors face a similar challenge:  How do you pin down what a software business is … Continued

International expansion is a key chapter in any organization’s story. It carries benefits such as greater geographical diversification and scaling of operations. At the same time, it is also a significant financial commitment that carries substantial risks. Given its potential impact on long-term success, such a move demands thorough evaluation and planning. While contemplating such … Continued

Debt, if mismanaged, has the potential to become a destabilizing force capable of bringing down even the most powerful corporations. For instance, General Motors (GM), a prestigious American automobile company, had to file for bankruptcy after its debt became unmanageable. The company could only be rescued after its debt was reduced from $170 billion to … Continued

The data highlights a thriving US startup ecosystem driven by advancements in AI, fintech, SaaS, space exploration, and biotech. Venture capital firms play a pivotal role in fueling these unicorns, while strategic partnerships amplify growth potential.  For entrepreneurs or investors interested in these sectors, focusing on scalable business models and emerging technologies could yield significant … Continued

Long ago, billion-dollar startups were scarce; they deserved their magical nickname: unicorns. Today, these powerful private companies have multiplied across the global economy, transforming from rare curiosities into formidable herds that reshape entire industries.  With more than 1,550 unicorns worldwide in 2025, their distribution tells us a compelling story about where innovation thrives, how capital … Continued

Jawbone, a wearable tech startup, was incorrectly valued at $3 billion as this valuation didn’t account for market realities like competition from tech giants. As a result, the company had to shut down, much to the dismay of investors and employees. Unfortunately, business valuations that do not align with market conditions are a common occurrence. … Continued

Valuation is an important factor in the startup world. Think of Lehman Brothers. A Wall Street giant, its overvaluation was the precursor to their dramatic 2008 collapse. Lehman Brothers had assets of $691bn at its height, but this high valuation masked the fragility of its finances. It was a warning about overpriced valuation. When the … Continued

The PEG ratio is one of the most valuable metrics in an investor’s analytical toolkit, offering deeper insight than traditional valuation measures. While the widely-used Price/Earnings (P/E) ratio helps assess a company’s current valuation relative to its earnings, the PEG ratio takes this analysis a crucial step further by incorporating the critical growth element. This … Continued

Industries have evolved distinct liquidity patterns in the financial ecosystem based on their unique operational demands, cash conversion cycles, and market pressures. A manufacturer stockpiling inventory will present a different financial profile than a subscription-based software company, though both might be equally robust. Whether you’re an investor seeking stability, or a manager gauging liquidity, understanding … Continued

Consider you are a small manufacturer and are faced with leasing a warehouse for an extreme seasonal sale event. Due to short notice, the owner demands a high security deposit and excessive rent. Without proper warehousing, you may lose significant profits. At this juncture, you need to assess whether you can pay the rent and … Continued

When looking at a company’s acid test ratio, it’s important to compare it not only to the general benchmark but also to industry-specific averages and the company’s historical performance for a more comprehensive assessment of its liquidity position. The acid test ratio is widely used across various industries for financial analysis and decision-making. Its application … Continued

As a founder, you must be extremely wary of inaccurate valuations since they can deter investors, set unrealistic growth expectations, and lead to suboptimal decisions in key areas such as mergers and acquisitions (M&As). A great example of this would be Yahoo! passing on Microsoft’s $44.6 billion acquisition offer and then, in 2016, having to … Continued