Archive
According to McKinsey’s research (1999-2013, 1770 transactions), the combined value of the acquiring and acquired organizations increased by an average of 5.8% as a result of acquisitions. In […]
Understanding what creates value and how it is created is critically important. A good format to grasp this is through a value creation tree diagram: First, let’s start […]
“When a management team with a reputation for brilliance tackles a business with a reputation for bad economics, it is the reputation of the business that remains intact.” […]
“Many want to be long-term investors, but as the graph shows, few succeed. As behaviorists say, the problem is fundamental for investors. Last week, I read this book: […]
Sometimes, the financial statements of a subsidiary are translated into the parent company’s currency before being presented, which complicates the evaluation of the subsidiary. In such cases, it’s […]
High inflation erodes the value of an organization because passing inflationary pressure onto customers is challenging and often not initiated – managers often do not realize the impact […]
Subsidiary companies operating in another country use the local currency. Therefore, their evaluation requires special considerations. In this entry, I will discuss forecasting cash flows for a subsidiary […]
