The Light Side of Valuation

Looking at estimation issues related to valuation and the dark side as it manifests itself in the valuation of mature companies, we must be able to deal with two aspects of mature companies in order to value them correctly. The first is how best to value growth at mature companies, especially when the growth is generated by acquisitions. The other is how to assess the impact on value of changing how a mature company is run. As we noted earlier, mature firms that have endured for long periods under existing management can have significant operating and financial inefficiencies.

Growth and Acquisitions

Some firms grow primarily through acquisitions; valuing these firms poses challenges. However, we can follow some ...

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