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Valuation for Selling an eCommerce Business

Peak Business Valuation

The Purpose of an eCommerce Business Valuation A business valuation is the process of determining the fair market value of a company. Income Approach: The income approach estimates value based on your store’s future income potential. Th is includes industry risks, financial risks, or market risks.

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ESOP Valuation: Common Mistakes and Best Practices

Equidam

From a valuation standpoint, the central question becomes : What is the fair market value of the equity being granted through the ESOP? By presenting a conservative but defensible valuation, the startup can mitigate risk. Risk Factors and Growth Potential Technical Risk : Is your product still in R&D?

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Startup Valuation: The Ultimate Guide for Founders

Equidam

11] The pricing often references the last primary round’s valuation or a formal 409A valuation, but negotiation considering company performance and market conditions is common. [11] Discount Rates / Risk Premiums: The discount rate used in DCF analysis (often the WACC) incorporates elements sensitive to market conditions. [21]

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Startup Valuation: The Ultimate Guide

Equidam

with Section 409A) require companies to establish the Fair Market Value (FMV) of their common stock through a formal valuation process. [6] 23] Equidam uses country-specific risk-free rates (10-year government bonds) and market risk premiums (sourced from Damodaran). [23]