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I read that. Thank you for the rest of your comment as well (not taken as a personal attack): I think you have identified one source of my confusion. I closel
by logicallee 9y ago
I read that.
Thank you for the rest of your comment as well (not taken as a personal attack): I think you have identified one source of my confusion. I closely relate the idea of valuation to share price.
I will read up to get a fuller understanding, but could I just ask one question before you go: do the terms "pre-money valuation" and "post-money valuation" or does the term "valuation", mean anything when you buy 100% of the company from me (without issuing any extra shares shares, and the company doesn't get any of your money) for a certain amount? If that amount is $500,000 then what is the pre-money and post-money valuation (if these terms apply).
This should clear up my confusion as in this case no extra stock is issued. I will read up on the rest. I want to know if these terms (pre-money valuation; post-money valuation; valuation) even apply in such a case!
Thank you for taking the time to understand some of my sources of confusion. Other than this one, I'll try to get a handle on the rest of my questions from other sources.
- beagle3 9y ago"pre" and "post" valuations are not relevant terms for a buyout; only for an invsetment; an invsetment goes into the company bank account and increases the value (hence, pre/post) of the company by that amount. in a buyout, an existing owner is paid, and no money goes into (or out of) the company bank account. For a buyout, you usually talk about price (although some people talk about "valuation" in this context too -- nomenclature is not completely standard here).
- logicallee 9y agoThank you!