article thumbnail

What Private Equity Investors Think They Do for the Companies They Buy

Harvard Business Review

What have been less explored are the specific actions taken by private equity (PE) fund managers. In a survey of 79 PE firms managing more than $750 billion in capital, we provide granular information on PE managers’ practices and how firms’ strategies relate to the characteristics of their founders.

CAPM 8
article thumbnail

Why We Need to Update Financial Reporting for the Digital Era

Harvard Business Review

However, many investors seem to have concluded that the most successful companies with tens of billions of dollars of valuation today could never have justified their valuation at the start of their operation based on discounted cash flow. Traditional companies therefore rely on two strategies.

Report 8
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

What Markets Do and Don’t Get About Innovation

Harvard Business Review

Sustaining innovation inhabits the world of incremental change, deliberate strategy , and most financial and management theory. Without theory to tell us how the rules are changing, many tools of management and finance seem to break down. New-market disruption is more complex.

article thumbnail

What is the importance of pre-money valuation For Your Business?

Strategy Driven

Discounted Cash Flow. Investors can make strong arguments if they don’t find the value of company according to their expectations. There are several methods for the valuation of a business or a company. Precedent Transactions. Comparable Companies. Formulas for Pre and Post Money Valuation.