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Dark Side of Valuation, The: Valuing Young, Distressed, and Complex Businesses, Third edition
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Dark Side of Valuation, The: Valuing Young, Distressed, and Complex Businesses, Third edition

by Aswath Damodaran
April 2018
Intermediate to advanced
800 pages
26h 27m
English
Pearson FT Press
Content preview from Dark Side of Valuation, The: Valuing Young, Distressed, and Complex Businesses, Third edition

9

Baby Steps: Young and Start-Up Companies

Valuing companies early in the life cycle is difficult, partly because of the absence of operating history and partly because most young firms do not make it through these early stages to success. This chapter looks at the challenges we face when valuing young companies and the shortcuts employed by many who have to estimate the value of these businesses to arrive at value. Whereas some of the rules that have developed over time for valuing young businesses make sense, other rules inevitably lead to erroneous and biased estimates of value.

Young Companies in the Economy

It might be a cliché that the entrepreneurs provide the energy for economic growth, but it is also true that vibrant economies have ...

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Publisher Resources

ISBN: 9780134854267