Blog Category: Business Valuation

SEC Reg CF is termed Regulation Crowdfunding (Reg CF) allows corporations to offer and sell their shares without needing to register the offerings with the United States Securities and Exchange Commission (SEC). Earlier, only accredited investors were allowed to participate in private enterprise funding. Regulation crowdfunding permits private, early-stage enterprises to seek investments from any … Continued

Startup valuation is the method of calculating the worth of a new company. In rounds of seed fundraising, investors provide funds in return for company shares. To calculate the number of shares to offer a seed investor in exchange for money, entrepreneurs need to get a valuation report. An investor will also need this report … Continued

SEC Reg A is a regulation under the Securities and Exchange Commission (SEC). Under Regulation A, private businesses that are going public via an IPO are not required to register their securities with the U.S. Securities and Exchange Commission (SEC). Usually, during an initial public offering, a privately-owned company can declare itself to the public … Continued

When discussing startup firms, we often hear about the term “valuation”, but what does it mean? Anyone who’s watched a few minutes of the American business reality tv series Shark Tank, they’ll recognize business valuation to provide a figure that often riles up the Sharks! While most would think business valuation is a way of … Continued

The approach to how companies, including law firms and other corporations, are valued has changed significantly in recent years. As such, organic expansion is probably not going to be sufficient when law firms determine there are areas of the law or regions they should practice in—possibly because they would be complementary to an existing practice … Continued

Cryptocurrencies have grown quickly over the past few years, leading to a huge buzz and often intense speculation. What’s more, the term “cryptocurrency” has been used to describe a wide variety of virtual currencies. The market capitalization of the cryptocurrency industry is estimated at around $1.17 trillion in May 2022. Cryptocurrencies are digital or virtual … Continued

In recent years, the involvement of technology in the business world has increased dramatically. Whether this is to make everyday tasks more efficient or to provide a better service, the need for the use of technology has been constant. One of the ways in which technology has had such an impact is through the creation … Continued

The terms “par value” and “fair value” are often confused with one another, and it’s important to understand the difference between the two. Stock markets around the globe are constantly fluctuating, and it is crucial that you understand the terms associated with the financial sector in order to strategize, improve, and function within it. The … Continued

When it comes to analyzing and selling their SaaS business, many companies struggle. This unique SaaS business strategy makes the SaaS valuation extremely different from that of traditional enterprises. There are many variables and multiples to consider when it comes to SaaS companies; this article will help you understand them all. SaaS Company Valuation SaaS … Continued

Business valuation is an estimate of the worth of a company’s assets in an effort to ascertain the value of a company. Get the correct valuation of your business and other IRS filing from Eqvista with an assured value and accurate calculation. Business Valuation and IRS Filing  In short, a business valuation is the process … Continued

The face value of preferred shares is set by the issuing firm, although it is essentially an arbitrary price. Because preferred shares offer consistent dividends but lack voting rights, they often trade for a lower price than common shares in the same company. The preferred stock is convertible into common stock and will increase in … Continued

We realize how difficult it is to evaluate early-stage companies, scaleups, or startups; therefore, we created a startup valuation calculator. Risk factors show a high level of uncertainty, multiples are calculated using comparable transactions, and applied models adjust for exits. Furthermore, dilution from subsequent rounds, the lack of key data on multiples, and many other … Continued

Startup valuation is a tricky affair. Unlike mature businesses, early-stage startups don’t have any results to show in terms of profit. It takes time for an idea to mature into a profitable business. But this does not limit their need for investments. Growing startups need the right amount of funds to burn and support their … Continued

Getting the value of intangible assets can be quite challenging. One such intangible asset is software, which many tech startups and developers have a hard time putting a price on their work. These developers and companies often receive offers to have them sell their software. In this situation, it is important to get a software … Continued

With a 409A valuation, private firms must first assess their common stock’s “fair market value” (FMV). The recognized current worth of one share of a private company’s common stock is known as fair market value. It shows how much the stock would be worth if it were traded on the open market. Thinly traded securities … Continued

SaaS is short for Software as a Service. It is a unique and growing industry and is also one that needs a lot of special considerations when it comes to selling such a company. The reason for this is simple, SaaS companies offer services such as applications and so on. Each company has its own … Continued

Company valuation is a basic indicator of a profitable business. Internally it helps management keep track of business growth. While externally, high valuations attract potential investors. Be it equity investment, merger, acquisition, or an IPO, the actual worth of a company is estimated using reliable valuation methods. This is usually done by professionals.  Enterprise Value … Continued

Startups use valuation methods that rely on guesswork and estimation. This means that there is no globally accepted analytical methodology for investors to evaluate the various factors. On the other hand, VCs and Angel investors opt for various venture capital valuation methods to estimate the value of a startup. The process of mapping the present … Continued

Evaluating a company’s value can be very challenging. Some founders want the highest valuation based on optimistic future revenues. On the other end, some investors prefer lower valuation methods based on current revenues. The final valuation will depend on how founders and investors agree on valuation.  Different methods are used for valuing early-stage companies. One … Continued

Investors tend to invest in a startup that has the potential to grow, especially if the market is big. The bigger the market, the higher the returns from economies of scale. To invest in a startup, they need to determine the value of the startup as it is one of the main factors used in … Continued