9
VALUATION
One of my first lessons on Wall Street was that to get ahead, you have to be creative. What I noticed was that successful investment bankers had a real knack for making something out of nothing. For example, when numbers didn’t look just right, a good banker could always tweak them a bit. No matter what a client desired—a higher selling price, a lower purchase price, stronger margins, lower capital costs—the banker could produce the numbers. A really good banker would earn the title “numerical masseuse,” and if you could send a masseuse to value a company, watch out!
The principles covered in this section apply not only to large corporate transactions but also to simple personal finance dealings. These principles lead to methodologies ...
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