Another snapshot of data provided by PWCMoneyTree.showing the size per venture capital per deal in companies of various stages since 1995. The magnitude of the upward spike for Expansion and Late State companies is rather startling, but not surprising in retrospect, with the quick upslope from 1998 through 2000. Of course, this was the heydey… [Read more…]
March 17, 2008
An astonishing train wreck. That’s all that comes to mind in reading about Bear Stearns’ collapse and J.P. Morgan’s purchase of the Wall Street mainstay since 1923. According to the Wall Street Journal – “J.P. Morgan Rescues Bear Stearns.” “Rescues?” Seems more like Cousin Vinny bailing out the “two youts” somewhere in Alabama after being… [Read more…]
February 17, 2008
I get the social part of it. I just found a friend of mine from high school, spent 10 minutes with my wife perusing pictures to put on my profile, and even reviewed 20 results for “Sambucci” including two in London, one in Glasgow, and one in Ecuador. I don’t get the 100x revenues to… [Read more…]
February 12, 2008
In my recent post, I discussed how a firm’s value could be determined simply by discounting the total revenue of the firm over a reasonable time period using an appropriate discount rate – the “Discounted Revenue Valuation Model” (DRVM)- because a firm’s revenue represents the total benefit received by its customers. DVRM focuses more on… [Read more…]
February 11, 2008
A common way to value a company is to look at the company’s total revenues and then take a some multiple such as “1x” or “2x” in conservative industries, with “10x” as an acceptable standard in the technology industry, and an incredible “100x” as witnessed in Microsoft’s valuation of Facebook. We’ll call this the “Revenue… [Read more…]
February 9, 2008
I’d like to tackle the issue of firm valuation. Determining a firm’s value is especially important for start-up firms under consideration for venture funding. Establishing, maintaining, and increasing a start-up’s value is central to the reason the firm was founded and for utilizing venture capital and investment provided to it. This introduces an item that… [Read more…]
June 4, 2007
Apax acquired Thomson Learning for over $7+ billion – nearly the same sale price as Chrysler! Pearson plc recently acquired eCollege for approximately $500 mln., despite Pearson’s strategic partnership with Blackboard, Inc., a direct competitor to eCollege. Additionally, this price reflects a value nearly equal to eight times revenue and 20 times EBITDA. I am… [Read more…]
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March 17, 2008
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