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Mathematical vs. Economic Dilution of Startup Equity: Thinner Slices of an Extra-Large Pizza

Gust

Every S-1 contains the same language in Risk Factors that reads, essentially, “If you buy shares in our IPO, you will experience substantial and immediate dilution in the pro forma net tangible book value per share.” Where the rubber really meets the road, in a nutshell, is ownership and control of the company.

Dilution 162
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Financial Planning For A Recession

YoungUpstarts

Analyze various positions at your company and lay off those employees that are not providing adequate benefit to merit their salary. Make sure the expectations and business needs are clearly communicated to your employees so they can help you succeed. Hire Employees. However, it is a reality that you will have to face.

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How will a buyer value your business?  

Berkonomics

Free Cash Flow Model: [Email readers, continue here…] This method is often used to value privately held companies with a range of five to eight times the cash available to spend after operating expenses are paid. Book Value Method: This is the basic net worth of the Company on the balance sheet.