Heat Maps for Valuing Venture-Backed vs. Closely Held Firms
During a recent BVR webinar, Joe Orlando (Exit Strategies Group) and Eric Sundheim (Mercovus Valuations) presented some heat map charts that illustrate the differences between the due diligence, tools, and approaches to valuing a venture-backed firm versus a closely held company.
Damages waiver precludes lost profits claim
In an Illinois case, a contract for consulting services for an online platform was terminated and the terminating party was supposed to return the source code to the other party but did not, breaching the contract.
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 ...
Business Valuation Update Yearbook, 2023 Edition
January 2023 PDF, Softcover (426 pages)
BVR (editor)
Business Valuation Resources, LLC
Business Valuation Update Yearbook, 2022 Edition
January 2022 PDF (454 pages)
BVR (editor)
Business Valuation Resources, LLC
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 ...
Despite COVID-19 and Brexit, the UK minted six new unicorns in 2020
CBInsights has updated its 2020 summary, showing that 76 private startups achieved unicorn status (a unicorn is a private company that has a valuation of more than $1 billion) last year, including six from the UK.
Examining the Correlation Between IP and Startup Valuations
In a recent article published in the Business Valuation Update, Efrat Kasznik (Foresight Valuation Group) covered six of the most common questions that routinely come up with regard to the correlation between intellectual property (IP) and startup valuations. These questions are important for each startup (particularly in the software industry) looking to manage IP as a strategic business asset.
Journal of Business Valuation 2016 Edition
From the CBV Institute ...