I came across two interesting articles today in my daily reading, both focus on how venture capital and private equity may be hurting our economy. As the stock market continues to climb to new record highs and GDP continues strong growth (4.2% revised upward for the second quarter) I think more and more about a bubble and that bubble bursting. In my career I have been through a number of economic slowdowns and recessions. In the 1980’s it was the recession in the auto industry, in the early 1990’s it was the recession after Gulf War I, then the dotcom boom and bust of 2000, and the great financial crisis of 2008.
The following presentation presents a basic approach that can be used to develop a merger/acquisition strategy for your business. It is especially geared towards product managers that are interested in exploring the pragmatic aspects of M&A for their company.
Calculating the Enterprise Value of a private company requires you to leverage indirect measures such as revenue estimates and average EV/Revenue multiples