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Barnet Associates Financial Services specializes in preparing Common Stock Valuations for the purposes of granting compensatory stock options

We provide an opinion, an estimate or an approximate indication of a company’s fair value using economic and market criteria.

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Changes in accounting practices have created the need for an objective third party opinion and generated recommended approaches for valuation.  Typically, company valuations are determined through three approaches:  The market approach for comparable companies; an income approach using discounted cash flows to determine present values; and an asset based approach.

For early stage companies with limited historical financial performance and no, low, or emerging revenue streams, traditional valuation approaches often do not directly apply, particularly the asset based method.  The approach is to look to venture capital funding for comparable companies and technologies, applying a risk adjusted rate of return to the income approach, assigning an appropriate multiple to the present value, adjusting the valuation for lack of marketability, proximity to liquidity events, and consideration of several other factors that may come to light in discussions with management, venture capitalists, and board members.

Barnet Associates Financial Services would be pleased to provide an estimate of valuation services for your specific needs.


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