Corporate Life Cycles: A Financial Perspective

This chapter delves into the parallels between corporate finance and valuation within the context of a company's lifecycle, comparing it to human development stages. It discusses the unpredictable nature of companies and critiques traditional valuation methods that assume indefinite lifespans, advocating for adaptations to reflect shorter corporate cycles. The chapter also highlights key financial decisions across different lifecycle stages, emphasizing the distinct focuses for startups, middle-aged, and declining firms.