Tuesday, April 5, 2016

Week 13 Reading Reflection

What really surprised me the most this reading when I learned about it was all the different sues that a valuation of a company has. Whereas before I only thought of a valuation when it came to a business selling point of view, I know now that they can be used for raising capital, determining inheritance tax and and establishing stock option plans for employees.
If I had the opportunity of asking a couple of questions to the authors I would probably ask them what conditions would entail a company to use a certain valuation method over the other. I would also inquire as to what exactly makes the pricing formula the way it is, and why those are the only values taken into account.
The one thing I found confusing about this chapter was the LOI, and the way it differs from a terms sheet, as they both seem very similar to me. I did not find anything that I particularly disagree with.

No comments:

Post a Comment