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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