• Tags

  • Tag: Mergers & Acquisitions

    Investing like it’s 1999

    As a follow up to my earlier blog post, Are private companies worth more than public companies?, The New York Times Dealbook provides a worthwhile visualization and commentary on the growing valuation of some of today’s private high technology stocks vs. the public companies at the cusp of the 2000 meltdown. As cited in the article, Investing Like It’s 1999, five private companies today are worth the same $71 billion as 24 public companies in 1999.

    Are Private Companies worth more than Public Companies? – Sometimes

    As a young investment banker, I was taught early on in my career that private companies are worth less than similarly sized, similarly profitable and similarly growing public companies. This was largely due to the lack of liquidity associated with private companies. Now, one of my bedrock beliefs is being challenged.

    I’m sure you have read of the recent financing rounds done by several high profile private companies, including Facebook and Twitter.

    [read more >>]

    The prosperity gap

     

    i e0ea4275910cee513456140eaebbea8b flag The prosperity gapWe had our quarterly visit from Maureen Farrow last week. (Maureen is a highly-respected Canadian economist whom we retain to provide us with economic analysis and briefings.)

    All things being equal given the tough economy,she’s feeling relatively bullish about Canada’s prospects these days. There is an unusual amount of global investor interest in our country and with good reason.

    After all, it’s no secret that Canada has survived the financial crisis better than almost all other major industrialized nations of the world.

    [read more >>]