Search

Global BVU News and Trends March 2024

Business valuation news from a global perspective.

Recent Trends in the Valuation of Early-Stage Companies

This webinar provides an overview of recent trends in the valuation of early-stage companies. We will review the guidance that the International Valuation Standards Council (including the most recent IVS 500), the Luxembourg Valuation Professionals Association, IPEV, and AICPA provide, and we will then provide practical, step-by-step examples of how to handle some current challenges in early-stage valuation, such as the valuation of SAFEs, how to incorporate down rounds into the valuation, and how to ...

Calculating Damages for Early-Stage Companies

Measuring lost profits damages for new or early-stage businesses can be a daunting task. Traditional damage analyses that rely on historical results are often meaningless since, by definition, startup companies usually lack a track record of operating results. Without an operating history for measuring lost profits, the damages expert walks a thin line between speculation and reasoned analysis. Under most circumstances, to be admissible evidence, damage analyses require a relevant and reliable factual basis. These ...

Global BV News and Trends July 2022

Business valuation news from a global perspective.

Global BV News: Valuing early-stage firms: full-day seminar from Malaysia

The valuation of early-stage companies is the focus of a full-day seminar August 17 in Malaysia.

A ‘Radical’ Market Data Approach to Startup Valuations

Michael Blake (Brady Ware & Co.) has issued a challenge to appraisers of early-stage companies: add rationality to valuing startups by relying more heavily on market inputs. The income approach is not always effective in prerevenue situations, so Blake turns to guideline public-company and transaction method alternatives.

Option Price Modeling in Early Stage Valuation: Practical Insights

The category of early-stage companies includes startup companies, which have an initial concept, design, or business plan but, not an actual product, as well as multibillion-dollar companies with significant revenue and operations that have yet to reach profitability. The valuation of an early-stage enterprise (ESE) is based on a mix of quantitative analysis, people insight, and intuition for the company’s growth prospects. In spite of their diversity, ESEs have unique characteristics as a group that ...

Seven Techniques to Consider When Calculating Damages for Early-Stage Companies

Measuring lost profits damages for new or early-stage businesses can be a daunting task. Traditional damage analyses that rely on historical results are often meaningless since, by definition, startup companies usually lack a track record of operating results. Without an historical operating history for measuring lost profits, the damages expert walks a thin line between speculation and a reasoned analysis. Under most circumstances, to be admissible evidence, damage analyses require relevant and reliable factual bases. These legal and evidentiary requirements are often heightened when measuring damages for new businesses.

What Black-Scholes-Merton modelling inputs should be considered when valuing early-stage enterprises for financial reporting

Option price models help analysts project values, particularly when assets have little history or highly volatile future outcomes.

Reasonable Certainty for New Business Lost Profit Calculations

A recent court decision has provided practical guidance for experts to mitigate concerns over providing speculative, unsupported lost profit estimations for a new business. The author also provides an example of a recent engagement.

BVU News and Trends September 2019

A monthly roundup of key developments of interest to business valuation experts.

A few recent research papers of note

These papers can be found at the Social Science Research Network.

Valuation Considerations for Venture and Early-Stage Companies

There are many challenges to overcome when determining the value of high-risk, early-stage companies. Valuations must consider not only acceptable methodology, but also the present economic and market conditions. This panel discussion features venture capitalist Laura Markley, attorneys Neil Bagchi and Patrick Connelly, along with valuation experts Liza Bowersox and Stuart Neiberg. They'll cover common best practices and guidance on techniques to value early-stage companies. Learn about corporate form, practical, and "real life" impacts of ...

Using DCF analysis in the midst of great uncertainty

Walking through early-stage tech valuations

This book offers a comprehensive and detailed coverage of the issues, methods, and art of valuing and pricing early-stage technologies. The purpose of the book is to illustrate how technology that is at an early or mature stage of research & development is traded, valued, and priced. The book is targeted toward professionals involved in the development, valuation, and licensing of intellectual property.