Thought Leadership

Unlock the Secrets: How a Term Sheet Impacts a 409A Valuation

How a term sheets impacts a 409A valuation report is a question we get from founders on a weekly basis. Depending on the specific facts, this situation can be difficult. When you have promised (but not granted) options and a great term sheet with a massive valuation has unexpectedly shown up, there are some issues …

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Why You Should Care about IRC 409A Valuation Compliance

For private companies early in their development and expansion phases, offering stock options can be a pivotal maneuver and an expert 409A Valuation is a central part of this process. These aren’t just equity compensation tools. They’re strategic instruments for attracting, retaining, and incentivizing top-tier talent, ensuring their allegiance to the company’s long-term objectives. Moreover, …

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Trimming Excess Working Capital to Boost Your M&A Valuation

M&A valuation is significantly influenced by adept management of a crucial financial tool: Working Capital Management (WCM). Mastering WCM is fundamental to achieving outstanding financial management and elevating business value. Working Capital: An Unseen Ally in Improving M&A Valuation   Working capital, the difference between your firm’s current assets and current liabilities, serves as a …

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Virtual Tokens, Tangible Damages: Deciphering the Diamond Fortress vs. EverID Ruling

As the Securities and Exchange Commission (SEC) brings enforcement actions against major players such as Coinbase and Binance, it’s pertinent to revisit a significant Delaware case from 2022 that tackled the valuation of crypto assets. A fresh look at this case provides valuable context amidst these recent enforcement actions. The Delaware Superior Court, in a …

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From Merger to Courtroom: Unpacking the Ramcell, Inc. v. Alltel Valuation Dispute

In a landmark decision that hones the focus on a valuation dispute over equity stock in an M&A transaction, the Court of Chancery issued an illuminating ruling in Ramcell, Inc. v. Alltel Corp., C.A. No. 2019-0601-PAF (Del. Ch. July 1, 2022). The lawsuit involved a 2019 short-form merger between Alltel Corporation (Alltel) and Jackson Cellular …

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Valuing Intangible Assets in Economic Downturns

In an ever-evolving business landscape, intangible assets – elements like intellectual property, brand recognition, and customer relationships – play a critical role in determining a company’s value. These ‘invisible’ assets can sometimes prove to be a company’s most valuable resources, often exceeding the worth of physical assets. However, during an economic downturn, accurately valuing intangible …

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Effective Exit Planning: Maximize Your Business Value Pre-Sale

Ready to sell? The first step in maximizing the value of your business is to engage in some effectived exit planning. This article provides a comprehensive guide to effective exit planning strategies you should consider for enhancing your business value before selling. Implementing these effective exit planning strategies can lead to a smoother sale process …

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Attract Big Tech Acquirers for Your Startup: Key Factors & Strategies to Consider

In today’s competitive business landscape, mergers and acquisitions (M&A) are a common strategy for Nasdaq 100 companies, especially in the technology sector, to expand their market share, acquire innovative technologies, and outpace competitors. For tech companies with revenues between $5 million and $150 million, being an appealing acquisition target can lead to significant growth opportunities …

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Discovering Opportunities in M&A: A Guide for Mid-Market Businesses

Introduction In today’s competitive business landscape, mergers and acquisitions (M&A) can offer a strategic advantage to companies seeking growth, diversification, or increased market share. However, identifying and capitalizing on M&A opportunities can be a challenging endeavor, especially for mid-market businesses with revenues between $5 million and $150 million. This article aims to provide business owners, …

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