Wednesday, April 6, 2016

Week 13 Reading Reflection


Another chapter of the book focused on the financials but this time primarily on valuation in the event of selling the venture out to potential acquired. The author highlights the different methods such as discounted cash flows where the projected earnings for the life of the firm are discounted back to time zero to find a net present value for the firm. However I believe the views of the options in this chapter are rather simplistic and in fact the range of options is much wider; I would like to see more about how the founders can still remain involved in the venture after an acquisition has taken place because they’re often given a lot of space and benefits to continue to run the companies that they know best.

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