Funding and Compliance Support for Early Stage Ventures

Early stage and small companies need help to make the right choices, and consulting and valuation partners with a different mindset and skills than those serving large firms.  We’ve seen start-up companies wipe out their common stock value by entering equity deals and issuing stock options that were not to their advantage.  It pays to have the right people on your team that can help you avoid these costly errors.

AVM provides analytic support with financial models of the business, valuation of potential stock offerings and projections of future cash flow so that the firm can see where liquidity will become an issue.  When choices arise on whether to borrow or issue equity, AVM helps project the impact on current investors.

If restricted stock is issued, AVMs opinion letters are a low cost way to provide the CEO some safety against personal liability should a dispute arise with the IRS or grantee.  And if stock options are issued, AVM prepares proven annual stock valuations that comply with IRC 409a, another area where a great deal of personal liability falls on the CEO for any errors in valuation.

And when it come to approaching potential investors, AVM’s pitch deck format and personal guidance from your analyst will assure that the important features of your comapny shine through in your presentation and that your arguments to support management’s opinion of value are sound – backed up both quantitatively and qualitatively with supporting assumptions.

Consulting Support:

Financial Modelling

Growth Planning

Strategic Advantages Identification

Pitch Deck Development

Valuation Support:

DCF calculations

Projected Exit Event Values

Restricted Stock Documentation Compliance

IRC 409a Compliance

Series A, B, C Negotiations

In America, anyone can become president. That’s the problem.
George Carlin

Articles

By avm February 5, 2016 In
Proposed IRS regulations to eliminate discounts for family limited partnerships (FLPs) are to be released comment, but never seem to arrive.  The Obama Administration proposed changing the law over several annual budget proposals in order to restrict or eliminate valuation discounts on transfers of interests in family-controlled entities. The Administration was not successful in having the...
By avm February 5, 2016 In
Since mid-2012, a steady increase in median revenue from $350,000 to $450,000, led to higher small business sale prices. Overall, this year's small business transaction data is following the trend of the past few years: steady activity along with improving financials. Although total transactions are on pace to fall three percent from peak 2014 levels,...
By avm February 5, 2016 In
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By avm February 5, 2016 In
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By avm February 5, 2016 In
Once a simple concept – reward employees for participating in the growth of a company’s value via stock options – incentive compensation has now become a very complicated area of tax regulation and accounting. At least since the creation of “qualifying stock options” in 1981, the IRS has required that options be priced at or...