Blog Category: Business Valuation

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

Advanced mathematical techniques and high-quality data analysis often give us confidence that the company valuations we came up with are rational and accurate. However, when we value companies, we are often required to make certain assumptions and decide whether certain ideas, hypotheses or information is relevant or not. These decisions can often be influenced by … Continued

The intellectual property (IP) valuation market in the United States has shown massive growth in 2023. According to Fortune Business Insights, the U.S. Patent and Trademark Office reported significant patent activity, with over 515,000 new applications received and around 340,000 patents granted in FY 2023, reflecting a robust demand for IP management tools. The process … Continued

What comes to your mind when you think of gifting? Expensive accessories, fancy vacations, or even donations? Stocks, which may increase in value over time, are a better long-term gift than something that will eventually wear out.  Furthermore, you can skip paying capital gains tax on the value increase through gifting instead of selling the … Continued

The “Raising the Bar” Act of 2012 holds significant relevance in the realm of patent valuation in Australia. This law introduces major changes and reduces the likelihood of Australian patents being broader in scope compared to international equivalents. The statistics show that Australia is experiencing a major surge in patent filings, which reached record levels … Continued

The unspoken ambition of any startup is to secure a high valuation. While achieving a high valuation is often seen as a mark of success, it can also open up a can of worms. This blog will explore the pros and cons of high valuation for startups. We will see how high valuations can make … Continued

Learning from the past, investors in 2024 are more conscious of the risks in private equity. The attitude has changed from being excessively optimistic to being vigilant. There is a call for transparency and consistency in portfolio valuations. As new technologies emerge, investors have recognized the need for advanced valuation methodologies. Join us as we … Continued

Investors are always looking for innovative startups that could disrupt their respective industry segments. Such startups can potentially capture a significant portion of value creation in a particular industry. However, more often than not, innovative startups will not have financial performance or market-tested solutions to bolster their claims. Instead, they would rely on their patent … Continued

In 2024, the business valuation landscape will go through some significant changes. Since representatives for almost half the world will be elected in 2024, substantial changes to government policies are on the cards. At the same time, we can expect some key regulations regarding ESOPs to be established. The rise of transformative businesses with never-seen-before … Continued

Intellectual property (IP) valuations aim to find out how well a company can monetize its research and development (R&D) results or reputation. IP rights, especially patents, are granted in such a way that companies are incentivized to keep innovating while other people have access to the technology and can improve on it eventually. The incentives … Continued

The valuation methodologies used by startups are highly dependent on estimation and guessing. What this implies for investors is that there isn’t a universally recognized way to analyze all of the issues.  However, angel investors and VCs use various venture capital valuation methodologies to determine a startup’s worth. When calculating the pre-money value of pre-revenue … Continued