Many startups and private companies struggle to decide whether they should issue ESOPs or Sweat Equity Shares to their key employees and directors. Here we try to analyze the pros and cons and compare the requirements and eligibility for both the options[…]
Read MoreValuation of a business enterprise reflects the expectation on future potential and performance of the business. Valuation Drivers are factors which significantly affect the value of the business enterprise. There are many factors affecting the value of the business including both qualitative[…]
Read MoreThe past one and half year has brought down-slide in the Indian Economy, starting from the fallout of IL&FS scam till the strict nation-wide lockdown norms being imposed in view of COVID-19. In this report, we collate and review the facts and[…]
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Employee Stock Ownership Plan (“ESOP”) are one of the prominent instruments used in the corporate and start-up world to attract, retain and motivate the high skilled and talented personnel of the business. ESOP motivates the employees to drive the performance of the[…]
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Since February 2020, the world has been facing unprecedented crises due to the spread of Covid 19 pendamic and the subsequent lockdowns imposed by various governments. This has caused massive disruptions in the normal business activity and has led to restrictions on[…]
Read MoreMany #startups still grapple with the various nuances of the provision of Income Tax Act (Section 56(2) (viib) to tax the excess premium amount received by the startup over the Fair Market Value of shares. In Feb 2019, the Indian Government came out[...]
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In the last 4 years, while RBI has reduced its Repo Rate by more than 35%, the banks’ lending rates have been reduced by only about 15%.
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Valuation of Start ups Prateek Mittal For a start-up looking to raise seed capital, there is always a question of how much to value your business and how much stake to dilute. In this article, we will try to analyse the various[...]
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Valuation of Start-ups – The Scorecard Valuation Method Prateek Mittal In continuation of our previous article on valuation of start-ups, here is another method which is commonly used by angel investors to value pre-revenue start-ups. The method is known as the Scorecard[...]
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