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

Harvard Business Review

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. Not all PE firms use the same strategy. Our research seeks to fill that gap.

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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.

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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. The task shifts from merely identifying innovations to evaluating strategy, tactics, people, and prices. So money piles into the sector, and crude bets based on disruptive potential become increasingly risky.

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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.