"Week 13 Reading Reflection"

"Week 13 Reading Reflection"

:

1. What was the biggest surprise for you in the reading? In other words, what did you read that stood out the most as different from your expectations? 

I had no idea that there were so many different methods for Venture Valuations. Is there one method that is the Best way to value a perspective business or do you have to use several methods to come up with a true valuation?

 

2) Identify at least one part of the reading that was confusing to you.

- I was a little confused about the 24% number that was discussed in the book being use as the Rate of Return for the cornerstone of the ventures worth. Is that just a random number used in the text or is that an industry standard that people use to value a perspective purchase of a business.

3) If you were able to ask two questions to the author, what would you ask? Why?

a. What happens when a buyer and a seller cannot agree on the evaluation of the business? Is there a mediator that they can turn to? I know they can just forgo the sell but just wanted to know is there outside help they can get to help close the deal.

b. Is there an industry standard of any kind of guarantee that a business will not collapse after you spend your money on such an expensive acquisition? I guess I’m asking about things like ongoing contract that they may currently have with buyers and or suppliers?

4) Was there anything you think the author was wrong about? Where do you disagree with what she or he said? How?

The information seemed to be very good about this subject even though there was a lot to digest on this subject.