Comment by qeternity
11 hours ago
Spoken like someone who has never started a business. Brex raised much less than $5b and Capital One apparently thinks it is worth more than that (otherwise they wouldn’t buy it).
This is called value creation.
11 hours ago
Spoken like someone who has never started a business. Brex raised much less than $5b and Capital One apparently thinks it is worth more than that (otherwise they wouldn’t buy it).
This is called value creation.
I think the investors who put $300m in at a $12b valuation would disagree
Definitely. No company has ever overpaid for another company. No fraud or FOMO-driven overvaluation has ever occurred in an acquisition. And all acquisitions have always turned out for the best. It's all 100% pure value creation.
Your statement is true on average because the world’s economy is continuing to function.
Oh wow, I don't even know where to begin with that.
Like, the world economy can't continue to function even if acquisitions were only 80% value creation on average? Or does the entire world economy depend on companies acquiring other companies with 100% value creation on average, such that it continuing to function logically implies 100% average value creation?
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"functioning" is doing a lot of heavy lifting here