Minority Discounts, Explained: Why Your 30% Stake Isn't Worth 30% of the Company
A 30% private stake typically sells 30–40% below pro-rata value: a DLOC for missing control plus a 20–35% DLOM for illiquidity, compounded.
#business-valuation
Business Valuation
Methods and best practices for determining the fair market value of a business
The Piotroski F-Score, Explained: Nine Binary Tests That Separate Strong Value Stocks From Value Traps
The Piotroski F-Score grades cheap stocks on nine yes-or-no tests of profitability, leverage, and efficiency: 8 or 9 signals strength, 0-2 signals a trap.
Pre-Money vs. Post-Money Valuation: The Two Numbers That Decide What Your Startup Is Worth
Post-money equals pre-money plus the investment — and which number a term sheet quotes decides whether a $1M check buys 20% or 25% of your startup.
Startup Advisory Shares, Explained: FAST Tiers From 0.1% to 1%, Two-Year Vesting, and When an Advisor Earns Options Instead of Cash
Advisors earn 0.1% to 1% on the FAST grid with two-year vesting; NSOs tax the spread at exercise, restricted stock needs a Section 83(b) election in 30 days.
Due Diligence Checklist for Buying an Existing Business: Quality of Earnings, Working Capital, and SBA 7(a) Requirements
SBA 7(a) acquisition loans now need 1.25x coverage and a QoE above $3M — verify earnings, peg working capital, and diligence tax before you close.
The ESOP Repurchase Obligation: The Growing Buyback Bill Every Employee-Owned Company Must Budget For
A mature ESOP must buy back 2–5% of its shares yearly at fair market value — model the curve early and fund it with recycling, redeeming, or releveraging.
SAFE Notes and Warrants Explained: How Founders Account for Caps, Discounts, and Dilution
Post-money SAFEs lock each investor's percentage at signing, so stacked SAFEs dilute founders. Model caps, discounts, and warrants before you sign.
SAFE Notes Explained: Valuation Caps, Discounts, and the Dilution Math Every Founder Should Run Before Signing
A SAFE converts at the lower of its valuation cap or discount price — and post-money SAFEs stack dilution on founders, not earlier investors.
Buying an Existing Franchise Instead of Building One: Transfer Fees, Approvals, and the Lease Clause That Can Kill the Deal
A franchise resale needs franchisor approval, a transfer fee, and a lease assignment to close — verify all three plus the seller's numbers before you sign.
The Shotgun Clause in Your Operating Agreement: How a Texas Shootout Breaks a 50/50 Deadlock
A shotgun clause lets one 50/50 LLC member name a buyout price the other must accept or match — a fast deadlock exit, if you avoid the valuation traps.
Buying a Small Business With an Earnout: Bridging the Valuation Gap Without Blowing Up Your Books
Earnouts pay out about 21 cents per promised dollar. Buyers book them at fair value under ASC 805; sellers report under IRS installment rules.
Uniform and Linen Rental Bookkeeping: Amortize the Garment Fleet, Price by Route Density
Rental garments are fixed assets, not supplies: amortize them over 6–36 months, cost the plant per pound, and let route density set what the business sells for.