July 2009
Intermediate to advanced
600 pages
19h 50m
English
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. While 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.
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