The main topic of this article is the notion of “impairment” to your firm’s ability to grow, much less maintain, its valuation after an “impairment episode”. COVID-19 is the most recent such episode and it has affected most firms in the United States and around the world. But pundits are writing this probably won’t be the last virus to cause impairment.
Valuation and Stock Prices in These Crazy Times: One Causal Model of Increasing Firm Valuation – The Ultimate Goal of the For-Profit Firm
I have re-written this article five times in the last five weeks (today is March 25, 2020). As we all know the COVDID-19 pandemic has caused huge losses in the stock market. It makes one wonder how stocks are really valued for publicly traded firms and how non-publicly traded firms (think of your favorite family-owned for-profit business) are valued.
The Full Potential of Your Business, Performance and Your Firm’s Valuation – Why This Is Such a Powerful Lens On Your Business
The concept of the “full potential” of your firm comes from Private Equity (PE) and its host of disciplines. I think it is a very important concept for firm performance and longevity as it tries to increase its valuation.