Navigating SAFE Valuations
Max Fonarev
May 16, 2024
Neither “Safe” nor “Simple,” these Simple Agreements for Future Equity are convertible debt instruments that are often misunderstood and hard to value.
7 Areas to Transform Your Financial Reporting Valuation
Max Fonarev
February 27, 2024
Creating shareholder value is the goal of most for-profit entities, where value is viewed in a strictly financial sense. In the world of startups and VCs, this means maximizing exit valuations. That exit valuation number is of fundamental importance. Exit valuations are built over time. Thus, tracking valuations is critical. Companies have many opportunities to
About Financial Forecast
Max Fonarev
December 5, 2023
A financial forecast is a centerpiece of many valuations. It answers the principal question: “Why the business is valuable in the first place?” In strategic analysis, financial forecast links business strategy and value. In financial reporting, a financial forecast is a more refined, post-strategic-planning representation of a company’s expected financial performance.
Technology Valuation: US GAAP View
Max Fonarev
September 22, 2023
It is hard to underestimate the importance of technology in modern enterprises. From legacy manufacturing to artificial intelligence and life science breakthroughs, technology plays an ever-increasing role. However, the need to assign a specific value to it may arise only when the enterprise is faced with a strategic transition, such as a merger or an
Your Valuation Needs Income Approach
Max Fonarev
July 5, 2023
The value of any business is defined by the amount of future cash flows it can generate. The three basic valuation methods are the income approach, the market approach, and the cost approach. Only the income approach directly addresses the question of value. It is the first on the list of recommended methods in all
Intellectual Property, Goodwill, and Other Intangible Assets
Max Fonarev
March 29, 2023
The predominant amount of S&P 500 value comes from intangible assets and goodwill (“Intangibles”) of the underlying companies. It is no surprise that patents and brands are more valuable than desks. Understanding the components of intangible value is of great relevance to tax authorities and financial stakeholders.
