Orchard Partners Topic Library
1. Valuing Common Shares in Venture-Backed Companies:
Venture Capital backed companies issuing common stock options need to be aware of the valuation methods discussed here.
2. Preferred Terms and Their Impact on Common Stock Value
A discussion of the rights preferred share holders typically enjoy in Venture Capital backed companies.
3. Approaches to Valuation
The three most common approaches to valuing businesses—market, income, and asset-based—are discussed.
4. Fair Value Versus Fair Market Value
Tax and accounting standards rely on different definitions of value. When presenting an opinion of a business' value, it is important to know which body of knowledge applies.
5. Equity Value Versus Invested Capital
A discussion of the difference between enterprise value (what’s the value of my business?) and equity value (what’s the value of my stock?).
6. What is the appropriate common stock discount for lack of marketability?
Valuations of privately-held common stock often include a discount for lack of marketability. Selecting the appropriate discount is a matter of judgment & expertise and those issues are discussed here.