While acquisitions of privatized businesses may be attractive because of the potential for MNCs to increase their efficiency, the valuation of these businesses is generally more difficult than the valuation of existing businesses.

Question

Quizplus · Accepted Answer

Privatized businesses may have less publicly available financial information and operating history, making it harder to accurately valuate them. Additionally, there may be regulatory or political risks involved which can affect the business's future profitability, further complicating the valuation process.

While Acquisitions of Privatized Businesses May Be Attractive Because of the Potential