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The filing with securities regulators on Wednesday suggests that G.M. has a market value of about $41 billion, short of the valuation needed for taxpayers to make money on the government bailout.
But the valuation needed to get a deal done has increased dramatically since then.
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That would mean that the valuation needs to be $25 million post-money at most, so $15-$15-$18 million is somewhere in the ballprek of this founder'somewheretinns".
Accordingly, valuation needs to remain grounded based on realistic short to medium-term earnings potential rather than a long-term winner-takes-nearly-all scenario.
In parallel, the valuation model needed to consider two competing views about the deal.
Nevertheless, the valuation also needed to consider less dominant logics such as synergies and how to model enhanced capabilities in global markets.
To gain broad support, therefore, valuations needed to generate results within the bounds of the two perspectives.
Furthermore, we collect results on translation invariant (mostly real valued) valuations needed in subsequent sections.
So exit valuations must increase, which is unlikely given the small number of buyers competing for deals, or valuations need to decline.
Fair valuations need expertise and independent judgment both in short supply in China.
Second, valuations need to be attractive; they are cheap but not dirt cheap at the moment.Third, we need some kind of catalyst.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com