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5 Financial Concepts Every Startup Founder Should Know

The Startup Magazine

When a company acquires another business, they often pay a lot more than the book value of the company. That’s because the parties that acquire companies look at more than cash value; they look at other less tangible characteristics that make a company worth money. Alpha generation. To create Alpha, you need a market edge.

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Airbnb S-1 (Part 1): So How Profitable Is This Thing Really?

View from Seed

Since inception this lodging marketplace (note 1) has enabled 825 million guest stays in over 200 countries with a cumulative booking value of more than $110 billion. Again looking at 2019 to make a pre-COVID assessment about any of these businesses and looking specifically at operating income (aka pretax) margins: Airbnb -10%.

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Business Valuation: Determining The Worth Of A Company

YoungUpstarts

Simply put, this approach lists a company’s total assets, deducts total liabilities, and determines overall value based on the difference between the two. Also referred to as Book Value . With a properly valued company, retirement to that tropical paradise could be just around the corner!

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