The Corrosive Downside of Acquihires
Both Sides of the Table
MAY 13, 2013
If you give $2 million for 20% of a company ($8 million pre + $2 million investment = $10 million post-money valuation) that has no product and no customers and it turns around 3 months later and sells for $5 million it would hardly be fair for investor to get $1 million back (20% of the proceeds). We get the mechanics.
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