Valuation
Valuation writing for founders: pre-money, post-money, how investors set the number, and how to defend it.
11 articles
How to Value a Small Business When There Are No Comparables
Five practical valuation methods for small businesses: EBITDA multiple, revenue multiple, discounted cash flow, asset-based, and the buyer reality test. With worked examples and…
Quality of Earnings: What the QofE Report Reveals and How to Prepare for It
The QofE report is the single most important document in buyer due diligence. It either validates your EBITDA or destroys your valuation. Running a sell-side QofE first gives you…
SaaS Exit Multiples: What Drives Valuation for Recurring Revenue Businesses
ARR multiples vs EBITDA multiples. Rule of 40. NRR above 115% triggers premium multiples. Below $5M ARR, buyers revert to EBITDA valuation.
The EBITDA Bridge: How to Recast Your Financials and Add Millions to Your Valuation
Five EBITDA adjustment categories that translate reported income into true earning power. At 6x multiple, every $100K add-back creates $600K in enterprise value.
How Buyers Actually Price Private Companies: The Three Valuation Frameworks
EBITDA multiples, revenue multiples, and DCF analysis. When each applies, what drives multiples up and down, and the size premium effect.
SAFE vs Convertible Note: Dilution Comparison for Founders
Pre-money vs post-money SAFE mechanics, cap and discount benchmarks, convertible note terms, and the real dilution difference most first-time founders miss.
Startup Valuation: How to Estimate Your Company Worth by Stage
Revenue multiples by stage (seed 20-50x ARR, Series A 15-30x), Rule of 40, median pre-money valuations from Carta 2024, and how growth affects multiples.
SAFE Notes vs. Convertible Notes: Which One, When, and Why It Matters
A SAFE is not debt. A convertible note is debt that converts to equity. SAFEs have no maturity, no interest, and no repayment obligation.
How to Negotiate Valuation Without Killing the Deal
Valuation negotiation is where most first-time founders either leave money on the table or blow up a deal by being unreasonable. The best valuation is not the highest number you…
The Exit Readiness Bible: The Complete Playbook From Preparation to Post-Close
The definitive guide to exiting your company. Covers valuation, the 24-month countdown, deal structure, tax planning, due diligence, and post-close wealth management. 34 chapters…
Convertible Notes Are Not Free Money. Here Is What Founders Get Wrong.
A convertible note is a short-term loan that converts to equity at a future financing round. It is the most common pre-seed financing instrument, and it is also one of the most…