In today’s world, workplaces are undergoing significant transformations. Technology has become more popular in our daily lives. It allows us to live simple lives. In every industrial area, everything is turning digital by reducing the use of old methods. Digital transformation is still a heated topic, especially among different industries. Depending on the industry, the term might indicate something completely different for a company. The adoption of new technology by one industry will be drastically different from that of another Industry, such as Different forms of digitalized uses in Commu ..read more

Before buying or selling a liquor store, every buyer and seller wants to know how much it is worth. The attractiveness of running a liquor store is strong since it is often less sensitive to economic downturns, making it one of the more stable business alternatives accessible. Liquor stores are seen to be an excellent alternative for business owners who prefer to remain “hands-off.” In reality, liquor stores require far more monitoring than is often assumed, and one must not ignore the fact that running a liquor store necessitates tight administration, strong customer service skills, and smar ..read more

Is it necessary for both investors and owners to do startup valuations? How would investors and owners determine the worth of a startup if it has no revenue? You must have these kinds of questions. Let’s take a closer look at how to value a business before it generates money. Investors and owners are both required to find the value of a company when it has no income for their better opportunities.  Why do investors and owners both need to evaluate the Pre Revenue StartUps? In order to attract excellent funding, all startups must assess their worth. When a company goes for fundraising rou ..read more

  When an asset is liquid and publicly traded, we know its value minute by minute. When an asset is sold, we know its value as of the transaction date, because someone wrote a check to buy it. How would you value an asset that is not publicly traded, or transacted, but needs a valuation? Lately, there have been talks by Janet Yellen and the Administration of taxing the rich and having them pay for the $6T deficit caused by the pandemic. Let’s break down this proposed tax legislation piece by piece, and then see the forest for the trees. This new proposal would only apply to people wit ..read more

  Why Convertible Notes effect on IRC 409A Valuation? About 409A Valuation The market can decide the market value of a share in public companies, whereas private corporations must rely on an independent appraiser. A private company can’t provide equity without knowing the value of each share. They need a 409A valuation. A 409A valuation is an independent appraisal that finds the value of the fair market value per share of common stock. 409A valuation is enacted by IRS Section for the federal income tax purpose. Important to whom? 409A valuation is important as it will protect the employe ..read more

  There’s an art to forecasting a business’ future. And the stakes for making accurate projections are high. Potential partners, staff, investors, shareholders, and insurance carriers want to make sure the one tasked to determine the value and financial potential of the startup makes a correct assessment. That’s where the 409a valuation comes into play. Many variables contribute to a business, or a person, becoming successful; and critical indicators may not always be apparent. For example, consider this true scenario: It’s the late 1700’s and a family of six is in poor health. The fath ..read more

How to figure out if your company is worth something? It doesn’t matter how big the size is in terms of the business or how much growth it already has but the way how it grows and how you can make your business more valuable over time. A business is a business. It’s a living and breathing entity with money, people, problems, good, bad, and the ugly, big or small doesn’t matter, the big or small business, it’s, all the same, they have different intended use, different problems but nevertheless they all are still belonging to the same category. What they should look into in their business ..read more

If you are buying a car you can go to Kelly Blue Book to consult pricing… If you are buying a house you could go to Zillow to look up home values… Where can you go if you are assessing a one-of-a-kind behemoth? There is an icon that has withstood the test of time for almost a century. It is an engineering muse representing the new American west… Let’s see what the Golden Gate Bridge is worth… I have appraised the Golden Gate bridge in a former life. Today I will share with you my process on how I go about valuing an iconic monument… Let’s get the basics down first… The total length of the br ..read more

Think we can help? Let us know how. Inquire The post Bharat Kanodia: How Subjective Value Generates Valuation in Business Episode #141 appeared first on Veristrat LLC ..read more

A friend of mine works for Rivian. I asked if he has thoughts on their expected IPO valuation of $80 billion He said – you know we have not delivered one car yet? Not one. But we are asking for a valuation that is more than GM, a company that sells 7 million cars a year. If the markets want to give us $80 billion, we aren’t going to say no. I already have my boat picked out. Like banks, public companies create money using valuations. The traditional path billions are either to inherit, or marry up, or win the lottery. Now the path to fulfilling that American dream is to start a company ..read more