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I have no idea how these corporate acquisitions are valued. Craftsman Tools was sold to Black and Decker for $500 Million. This was and is a respected tool br
by tombert 2y ago
I have no idea how these corporate acquisitions are valued.
Craftsman Tools was sold to Black and Decker for $500 Million. This was and is a respected tool brand with an international presence making physical and tangible products and it is apparently worth 1/64th of Wiz.
I'm not even saying Wiz is overvalued, I don't know, I'm just not sure how they come up with these numbers.
- therealdrag0 2y agoI think the main calculus is around estimating future profits. Do they make a profit? Is it a crowded space? Is the market space growing? What assets do they have? People, land, factories, or intellectual IP? Etc etc. I don’t know the details of either deal but it’s easy to imagine a case where Craftsman tools is just a brand in a crowded market with no special sauce. For example Sears never even made the tools, they outsourced it. Also it sold for 900m, 500m was the initial payment.
- tombert 2y ago> Also it sold for 900m, 500m was the initial payment. Yep, you're definitely right, I misread. Still less than a billion. > I think the main calculus is around estimating future profits. Do they make a profit? Is it a crowded space? Is the market space growing? What assets do they have? People, land, factories, or intellectual IP? Etc etc. Yeah I guess that makes enough sense, though I have to admit that sometimes it feels kind of removed from reality sometimes.