"Tech Finance" with Sasha Orloff: B2B Fintech | AI | Finance Tech cover image

E3: Chris Bakke on Negotiating with Elon Musk and Setting Up An M&A from Day One (3x exits)

"Tech Finance" with Sasha Orloff: B2B Fintech | AI | Finance Tech

NOTE

Valuation is a Fluid Concept

Valuing a company can present significant challenges, particularly when assessing firms like Twitter, where opinions on its worth can widely vary, ranging from $8 billion to $45 billion. The valuation process often involves negotiating a combination of cash, stock, and earnouts, but in this case, the negotiation was remarkably straightforward due to the direct approach taken by key individuals. Rather than engaging in protracted deliberations and extensive financial modeling, the focus was on clear communication: proposing a number and receiving a prompt response. This efficiency in negotiations reflects a broader strategy where decision-makers can forgo exhaustive analysis for a more decisive and pragmatic discussion on company valuation.

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