2min snip

The Iced Coffee Hour cover image

The Dark Truth of Exotic Cars: Steve Hamilton Exposes The Used Car Market, Ripoffs, and Scams

The Iced Coffee Hour

NOTE

Beware of Inflated Valuations

Many private equity firms overvalued companies during the COVID era, resulting in regret and significant financial losses. Companies that purchased others at unsustainable EBITDA multiples are now facing bankruptcies, highlighting the risks of overvaluation. Even at liquidation, distressed firms still hold considerable value, as demonstrated by a bankrupt company maintaining a value of $30 million despite heavy losses. The case of a long-established company that accumulated excessive debt serves as a cautionary tale about the consequences of inflated valuations and excessive leverage. Currently, even consistent growth does not equate to billion-dollar valuations, illustrating a shift in market perception and discipline.

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