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Showing posts from March, 2022

How to do Startup Valuation?

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Market Multiple This is the most common method of valuation followed by venture investors. In this market, multiple methods, recent acquisitions on the market by similar nature of startups are taken and a base multiple is decided on the basis of the value of recent acquisitions. This gives the base market multiple on the basis of which startup valuation is conducted. This valuation technique provides a fair idea to the investors regarding what the market is willing to pay for a company. Cost to Duplicate The motive behind this method is to ascertain how much cost will it take to build a similar startup from the scratch. To determine the fair market value of the business, the cost to duplicate method looks at the physical assets of the company. The idea behind this is not to invest more than what it costs in the company Berkus Approach This method was created by Dave Berkus, an American angel investor, and venture capitalist. It promotes valuing a startup on five major assessment facto

How to do Startup Valuation?

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Market Multiple This is the most common method of valuation followed by venture investors. In this market, multiple methods, recent acquisitions on the market by similar nature of startups are taken and a base multiple is decided on the basis of the value of recent acquisitions. This gives the base market multiple on the basis of which startup valuation is conducted. This valuation technique provides a fair idea to the investors regarding what the market is willing to pay for a company. Cost to Duplicate The motive behind this method is to ascertain how much cost will it take to build a similar startup from the scratch. To determine the fair market value of the business, the cost to duplicate method looks at the physical assets of the company. The idea behind this is not to invest more than what it costs in the company Berkus Approach This method was created by Dave Berkus, an American angel investor, and venture capitalist. It promotes valuing a startup on five major assessment facto

Intellectual Property Valuation: Benefits and Methods.

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What is IPR Valuation? Intellectual property rights valuation or IPR Valuation is one of the most critical areas of finance that comes into play during the sale and purchase of companies and during solvency, merger, and acquisition transactions. Intellectual property is intangible assets that are either already patented or a patentable product, process, or service, or a trademark, copyright, or brand. Original source of this blog : https://www.resurgentindia.com/intellectual-property-valuation-benefits-and-methods

Intellectual Property Valuation: Benefits and Methods.

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  What is IPR Valuation? Intellectual property rights valuation or IPR Valuation is one of the most critical areas of finance that comes into play during the sale and purchase of companies and during solvency, merger, and acquisition transactions. Intellectual property is intangible assets that are either already patented or a patentable product, process, or service, or a trademark, copyright, or brand. Original source of this blog : https://www.resurgentindia.com/intellectual-property-valuation-benefits-and-methods

Here is Everything You Must Know About Private Equity Companies.

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  What makes it so controversial? At times, private equity companies play the strategies often performed by the critics known as "Vulture Capitalism." During this process, investors earn enormous profits by laying off the staff.Defenders of equity firms opine that those who are bankrupt, an infusion of money, can be life-saving for them. The money you are getting can be used to upgrade the software or buy new equipment or paying the unwanted staff.   Original source of this blog: https://www.resurgentindia.com/here-is-everything-you-must-know-about-private-equity-companies

Here is Everything You Must Know About Private Equity Companies.

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What makes it so controversial? At times, private equity companies play the strategies often performed by the critics known as "Vulture Capitalism." During this process, investors earn enormous profits by laying off the staff. Defenders of equity firms opine that those who are bankrupt, an infusion of money, can be life-saving for them. The money you are getting can be used to upgrade the software or buy new equipment or paying the unwanted staff.   Original source of this blog: https://www.resurgentindia.com/here-is-everything-you-must-know-about-private-equity-companies

Due Diligence Report

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  What is Due Diligence Report? Due diligence is a simplistic process that includes research and analysis before an acquisition, or investment. Also, it is done before a business partnership or bank loan, to understand and find out the value of the subject undertaken for due diligence. Further, it is relevant to ensure that there are no issues involved, which can be a blocker in the process.  Once the monitoring process is completed, the concluded summarized report of findings is called Due Diligence Report. Original source of this blog : https://www.resurgentindia.com/due-diligence-report-process-importance-and-types

Due Diligence Report

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  What is Due Diligence Report? Due diligence is a simplistic process that includes research and analysis before an acquisition, or investment. Also, it is done before a business partnership or bank loan, to understand and find out the value of the subject undertaken for due diligence. Further, it is relevant to ensure that there are no issues involved, which can be a blocker in the process.  Once the monitoring process is completed, the concluded summarized report of findings is called Due Diligence Report. Original source of this blog: https://www.resurgentindia.com/due-diligence-report-process-importance-and-types
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What is Fairness Opinion Valuation? Fairness Opinion Valuation report in India is essentially a professional opinion consolidated with the inclusion of collected data and market expertise of an independent analyst. The report provides suggestions to the parties involved in a merger/ acquisition or takeover, etc. Need of Fairness Opinion Valuation To justify the trust that the shareholders have in the management of the company, the Fairness Opinion Valuation report is a must. Here’s the list of advantages of obtaining a Fairness Opinion Valuation:- Minimises the risks of disagreement among shareholders. Board of directors must demonstrate their positive intentions to the shareholders. Validation from a qualified independent advisor affirms fair valuation of price. Good idea in case of a possible hostile takeover. Original source of this blog : https://www.resurgentindia.com/need-of-fairness-opinion-valuation-for-business-growth

Fairness Opinion Valuation

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What is Fairness Opinion Valuation? Fairness Opinion Valuation report in India is essentially a professional opinion consolidated with the inclusion of collected data and market expertise of an independent analyst. The report provides suggestions to the parties involved in a merger/ acquisition or takeover, etc. Need of Fairness Opinion Valuation To justify the trust that the shareholders have in the management of the company, the Fairness Opinion Valuation report is a must. Here’s the list of advantages of obtaining a Fairness Opinion Valuation:- Minimises the risks of disagreement among shareholders. Board of directors must demonstrate their positive intentions to the shareholders. Validation from a qualified independent advisor affirms fair valuation of price. Good idea in case of a possible hostile takeover Original source of this blog : https://www.resurgentindia.com/need-of-fairness-opinion-valuation-for-business-growth

Mezzanine Funding - Meaning, Need and Types.

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  Mezzanine funding is a type of junior capital between senior debt financing and equity. In short, a means that companies can access capital from. Let’s understand its features in detail.  Mezzanine funding can either be defined as a portion of the savings given by private equity, and taking further loans from multiple investors to provide funds for the purchase; or it can be categorised as private equity that come from company’s own savings and then they further take debt from the company itself to arrange the funding. Hence, in this type of funding there is a risk factor, which is much higher and the expectation of benefits is also high.  Definition of Mezzanine Funding Mezzanine financing is a mix of debt and equity financing that gives the lender a right to convert it to an equity interest in the company mostly when the capital companies and other senior lenders have already been paid.  Mezzanine debt consists of equity instruments also known as warrants, which increases the valu

Investment Banking Firm – Overview, Functions and Benefits.

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What is investment banking? Investment banking is a separate division of the financial sector that arranges debt and deals in securities for all types of corporate organizations. Additionally, it is also responsible for providing other services such as financial advisory services and mergers and acquisitions etc. In simple words, we can sum up that investment banking firm work as a mediator between the corporates looking forward to expanding their business and potential investors . In modern times the financial needs of business owners have increased tremendously. On top of that, handling such large finances requires the assistance of experts such as investment bankers. Thus investment banks come to the rescue of such people with huge capital needs and help them run their businesses smoothly. Overview of investment banking firm. While a commercial bank is essential in handling the day to day financial needs of the people/ entrepreneurs and provides the credit requirements, an investme

Structured Financing Strategies That Can Help Your Business Growth.

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Finding the right financial strategy is the key to business growth. Choosing the appropriate financial structure, the best sources of capital, and the right financial strategy can accelerate profits and growth in a business considerably. Thus, it is very important to emphasize a sound financial strategy.  What is Structured Financing ? Structured finance is a highly effective finance technique that primarily caters to large companies or institutions whose experience with conventional finance products has not satisfied their complex financial needs and goals. These financial instruments are designed for large corporations to revive from severe asset risks. Unlike the conventional financing methods, structured financing deals with various financial lending instruments that usually mitigate risks concerning complex assets. Small enterprises opt for traditional tools like mortgages and small loans. On the contrary, large enterprises with bigger borrowing capacity require structured financ

Financial Advisory Services: Complete Overview.

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  Proper planning and allocation of funds can be quite nerve-wracking for anyone. A financial advisor is an expert that helps at each stage from planning to constructing a portfolio of assets. Financial advisory services consist of a team of qualified professionals that provide advice on how to manage money and assets efficiently. Financial advisory services can include a whole host of individuals such as certified financial planners, wealth managers, investment advisors, and certified public accountants. Why Avail Financial Advisory Services?   A good financial advisor will enquire about the goals, understand your debts, income and expenses, and create an optimum plan to reach the target most efficiently.  Helps in Attaining Goals: A financial advisor can brainstorm and understand your financial goals. Then the advisor curates a plan of action to attain those long-term goals. Expertise: Financial advisors are professionals who know about investment and money management more than m