The valuation of newly privatized businesses is generally more difficult than the valuation of a foreign target that has operated privately for several years.

Question

Quizplus · Accepted Answer

Newly privatized businesses may lack historical financial data and market performance, making it challenging to estimate their future growth prospects and profitability. In contrast, a foreign target that has operated privately for several years may have an established track record that can assist in the valuation process.

The Valuation of Newly Privatized Businesses Is Generally More Difficult