Blog Category: Business Valuation

The root cause of the failure of 65% of start-ups is due to founder conflicts. Issues like executive misconduct, conflicts of interest, and mismanagement of resources are often the roots of shareholder disputes. A common flashpoint within these disputes is a financial reporting dispute, where disagreements arise over the accuracy, transparency, or interpretation of a company’s … Continued

Last Updated: 25 January, 2025 Anyone who’s been in the investment market long enough will be aware of the many valuation tools that are used. Each one considers different valuation parameters and has its merits and demerits, but none of them are used on its own. Only the best professional analysts know the right combination … Continued

Given that some of the most highly valued companies in the US are software companies, this sector is bound to attract investors and breed innovation. Accurate software company valuation has thus become a critical skill for investors, analysts, and business leaders. So, let us help you build an understanding of exactly how software companies are … Continued

Last Updated: January, 2025 Company valuation is one thing that every entrepreneur must bear in mind at every stage of a business. No significant decision can be taken without estimating the market value of a company at any given point. Factors called valuation multiples are important indicators in this process. Investors and company managements alike … Continued

As of 2025, the Price-to-Sales (P/S) ratio has demonstrated notable trends that reflect broader market conditions and investor sentiment. The P/S ratio has shown a significant upward trend over the last five years, when it surged by over 40% alone for the NASDAQ Market. The current P/S ratio for the S&P 500 in January 2025 … Continued

Raising capital is an inevitable step in growing your business to its next level. This is because as a company starts scaling, the need for funding also grows because there are employees to be paid and operational activities to be updated. It is also important to understand how to balance these costs on your company’s … Continued

A logical step in resolving disputes over business value is getting the unbiased opinion of a valuation analyst. This holds true even when such disputes snowball into lawsuits. However, when this does happen, the role of a valuation analyst becomes a lot more nuanced and is referred to as a valuation expert witness. The goal … Continued

It is an unfortunate fact that thousands of American companies file for bankruptcy every year. In 2023, we saw 18,926 businesses file for bankruptcy, 40.39% higher than the bankruptcy filings in 2022. Each bankruptcy filing would involve arranging the sale of assets, transferring assets to creditors to settle debts, and allocating leftover funds to all … Continued

Companies’ equity is the most powerful tool at any stage, from early angel rounds, through all the alphabet rounds, IPO, being publicly traded, or even being delisted. Every stage involves equity movement. Some companies choose to remain privately owned with a small number of employees holding ownership stakes. Great entrepreneurs’ equity ownership is fascinating. A … Continued

Last Updated Jan 2025 Company valuation is an important recurring process in every business. It is in many ways a projection as well as a milestone in a company’s growth cycle. Analysts can select from a wide array of valuation tools to suit industry needs. While it is easier to arrive at a valuation for … Continued

As the 2026 lifetime gift and estate tax exemption sunset approaches, it has become even more important to wind up your estate planning. If the estate tax provisions of the Tax Cuts and Jobs Act (TCJA) are not extended, we expect the lifetime federal estate and gift tax exemption to drop to $6.99 million in … Continued

Private equity represents significant wealth creation opportunities and the asset class involved in nurturing technologies. However, the diverse funding needs, company structures, and investment styles give rise to complex relationships in private equity. A high level of delicacy and professionalism is required to navigate such relationships. This is where expert insights into private equity disputes … Continued

In 2025, we expect a sunset on the federal estate tax exemption limit. So, the federal estate tax limit could drop from $13.99 million in 2025 to $6.99 million in 2026. Hence, all Americans are rushing to finalize their estate planning and to make the transfers in time. However, when there is haste, there are … Continued

Startup valuation software has emerged as an indispensable tool for founders and investors to negotiate valuations in fundraising rounds. Other applications of this tool also include issuing equity compensations while maintaining tax compliance. However, today, we would like to examine how valuation software can help you make informed decisions. We will explore the use of … Continued

Knowing the true value of your business is the first step in preparing for its next big move. Some may view business valuation exercises as routing number-crunching needed for funding rounds and investor exits. However, it can offer far greater value. A professionally prepared business valuation report establishes a price point in share transactions and … Continued

In May 2024, Johnson & Johnson completed its acquisition of Shockwave Medical offering $335 per share. On 26th March, when this deal first came to light, Shockwave Medical’s share price increased by 10.04%. Thus, acquisitions can cause significant swings in share prices.  When your company becomes the target of an acquisition, you, as a shareholder, … Continued

There is no static value or performance for the many investments that make up a portfolio. Many businesses employ investment management systems to pick and execute the best initiatives.  Whether you’re in the building industry, the oil and gas industry, the military industry, the technology sector, or any other sector, active portfolio management will guarantee … Continued

Equity management, which involves share acquisition, oversight, and even sale, is anchored on valuation. Assessing a business organization’s worth and its stock price is tedious. But investors have a way of working around this: valuation methods. These techniques can zero in on the real score of a company’s stocks. They can determine if a stock … Continued

In the world of startups, founders often chase sky-high valuations to validate their success. However, high valuations can lead to disadvantages like overinflated expectations and increased risks of down rounds. Conversely, low valuations can lead to dilution of ownership in fundraising rounds and raise the risk of unfavorable acquisitions. One advantage of low business valuations … Continued

Did you know that in the first seven months of 2024, more than 19,000 mergers and acquisitions (M&A) have happened? The highly-competitive consumer products and services industry accounted for almost 6,000 of these deals.  The high volume of deals in competitive industries makes business valuations very easy. After all, the main issue with private equity … Continued