Business valuation for SEC filing (Regulation A+, Regulation CF, Regulation D offering)

Familiarity with the terms Reg A, Reg D, and Reg CF is crucial for private companies looking to raise funds from crowdfunding.

Crowdfunding involves more than just creating a campaign and collecting funds. This is why the Securities Exchange Commission (SEC) scrutinizes crowdfunding initiatives to ensure compliance with regulations. Each regulation (A, A+, CF, and D) sets distinct legal guidelines for different types of campaigns.

  • Reg CF (Regulation Crowdfunding) allows companies to secure up to $1.07 million annually from accredited and non-accredited investors.
  • Reg A+ (Regulation A+ Equity Crowdfunding) allows fundraising of up to $75 million yearly from both investor types, offering a simpler alternative to traditional IPOs.
  • Reg D (Regulation D Equity Crowdfunding) facilitates unlimited fundraising from accredited investors without SEC registration.

You need an accurate business valuation for SEC filings to ensure a successful Regulation A+, Regulation CF, or Regulation D offering. Accurate records and reports can also attract wise investors and ensure regulatory compliance.

Eqvista offers independent data-driven business valuation reports tailored for business owners and investors, meeting regulatory requirements.

Eqvista’s Valuation Expertise

When it comes to valuation for SEC filings, Eqvista follows the required professional standards for securities offerings as mandated by Regulations A+, CF, and D. Eqvista’s business valuation approach involves a detailed evaluation of the company’s financial statements, assets, liabilities, market conditions, and other relevant aspects.

Here are the most common methodologies Eqvista uses to deliver precise results.

Income Approach

The income methodology provides an extensive method for estimating a company’s worth by converting projected financial gains into a single present-day sum. Put another way, a company’s worth is proportional to the sum of all cash flows (both current and predicted in the future) that it will likely generate.

Here are the key benefits of the income approach

  • Captures Intangible Value – Reflects the value of intangible assets and growth opportunities not on the balance sheet.
  • Forward-Looking – Based on expectations of future performance, which is more relevant for operating businesses.
  • Accounts for Risk and Growth – Allows direct adjustment for risk through the discount rate and growth through cash flow projections.
  • Suitable for Mature Companies – The capitalization of the cash flows method is relatively straightforward for stable, mature companies.
  • Flexible for Growth Companies – Discounted cash flow (DCF) methods can explicitly model varying growth patterns and capital needs.
  • Aligns with Valuation Principles – Directly relates value to the present value of future economic benefits, a fundamental valuation principle.

Market Approach

With the market approach, valuators contrast the subject firm with recently sold comparable companies. This comparison mostly depends on multiples particular to the industry, including price-to-earnings or price-to-sales ratios obtained from market data of related businesses.

Here are the key benefits of the market approach for business valuation:

  • Based on Market Data – Relies on actual transaction data from the market, providing an objective, market-derived value.
  • Ease of Calculation – Relatively simple calculations based on comparable company multiples or precedent transactions.
  • Reflects Current Conditions – Market prices inherently reflect current economic conditions, industry outlook, and investor sentiment.
  • Suitable for Investors – Useful for attracting investors by benchmarking against comparable companies or transactions.
  • Widely Accepted – A well-established and widely accepted valuation method by stakeholders.

Discounted Cash Flow

DCF is a way to determine a company’s worth by predicting its future cash flow. After making the necessary adjustments, Eqvista uses these factors to calculate the company’s present market value. This unique approach determines the company’s value while considering inflation.

Here are the key benefits of the Discounted Cash Flow (DCF) approach for valuation:

  • Intrinsic Value – Determines the intrinsic or true value of a business by discounting future cash flows to present value.
  • Comprehensive Analysis – Provides a comprehensive overview by considering the explicit financial performance over all future years.
  • Cash Flow Based – Based on projected free cash flows, which are a more reliable measure than accounting earnings.
  • Forward-Looking – Incorporates future expectations about the business strategy, growth, and performance into the valuation.
  • Flexibility – Can be applied to value different types of investments and cash flow patterns.
  • Objective Comparison – Enables objective comparison of diverse investment opportunities based on cash flows.
  • Sensitivity Analysis – Allows testing different scenarios and assumptions through sensitivity analysis.

After carefully examining various factors, Eqvista chooses the best approach to ensure the value accurately captures the actual business and market circumstances.

Every valuation for SEC filings is based on solid financial concepts and considers the market’s state and trends. Real-time market data integration helps provide trustworthy and logical valuations to draw investors and meet legal obligations.

What We Deliver?

When you engage Eqvista’s valuation for SEC filings, you get a complete package that complies with investment analysis and regulatory compliance requirements. Here is a full list of what you can expect:

  • Precise valuation report – This is the main document that makes up our deliverables; it provides the value results in a thorough and organized way.
  • Well-supported conclusions – Our appraisal procedures’ analysis and rigorous methodology are supported by quantitative statistics and qualitative evaluations.
  • Clear communication of the valuation rationale – Our reports clearly explain how each valuation was arrived at and the considerations involved. It helps investors, regulatory agencies, and company management better comprehend the value.
  • Concise presentation – All reports are straightforward and professional, paying close regard to the layout’s clarity. We ensure that the data is presented logically and is simple to read and understand.

Need a clearer idea of what to expect? Here’s a sample valuation report.

Our Proven Track Record, Unmatched Client Satisfaction

Eqvista is a recognized expert in providing legally supportable valuations for companies of various sizes, industries, and stages for providing:

  • Valuation for SEC REG A offering
  • Valuation for SEC REG CF offering
  • Valuation for SEC REG D offering

We have NACVA certification and employ extensively skilled specialists who diligently manage each case.

Our experts offer insights on addressing valuation implementation challenges to regulatory and standard-setting authorities. Our clients turn to us for precise, safe harbor-eligible, high-quality assessment, and company valuation services. Hear it from them!

“I like that they produced the report quickly and took on additional feedback we provided to help us with the valuation needed.” – Denisa K.

“Very pleased with Eqvista’s quality of report, rigor of analysis, turnaround speed and cost.” – Conor M.

“The title says it all. They were efficient, effective and logical in their analysis – what more does one want from a valuation company?” – Brad C.

Know more about what clients think of us here.

How to Get Started?

You can easily schedule a consultation to begin working with Eqvista for your business valuation needs. During this initial meeting, our team will discuss:

  • Your requirements
  • Outline our valuation process
  • Explain how we can tailor our services to your company’s needs

For detailed information on scheduling this consultation, please contact us.

Schedule Your Valuations for SEC Filings With Eqvista!

As a skilled group of valuation experts, Eqvista can assist you in creating valuation reports for your business. Our expertise in conducting numerous valuation projects has helped us offer market insights backed by technical research and analysis.

Whether your business needs assistance in comparable company analyses, valuation methodology implementation, or multiples calculation, we offer data-backed consultations.

Our valuation service offers competitive pricing, with costs and the scope of work established upfront. We tailor our business valuation reports to meet each client’s specific requirements, along with Eqvista’s detailed data analysis and comparison with similar companies. Contact us for further information regarding valuation for SEC REG A, D, and CF offerings.

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