Hey guys
I'm new to the platform and have completed my second year in the industry, so forgive me if my question seems obvious.
I work in the fund of funds team of an institutional investor and I'm currently covering a growth equity fund that reports the value of its portfolio companies using the "Guidelines Transactions Method" which, as I understand it, is based on the share price of the latest financing round. The thing is, for some of these companies, the latest financing round has occurred between 2-3 years ago. The firm claims that this approach is widely accepted under ASC 820. However, my hunch tells me that so many things can occur in a year or more that changes the intrinsic value of a company.
Am I right to be skeptical around GTMs? Is this something that is widely accepted in growth equity?
I'd be grateful to hear your thoughts
-Good Vibes Only
Quas non nulla itaque ipsa labore dignissimos. Ut perspiciatis hic voluptatem officiis. Officia ea necessitatibus dolores.
Aspernatur provident culpa vero maxime quod earum. Delectus dignissimos nihil optio natus aut ut nulla. Quaerat illum occaecati deserunt ut voluptatibus. Amet et rerum exercitationem adipisci non ratione.
Eaque vel dolores enim culpa voluptatem. Voluptatem voluptatem et quis. Nam voluptas totam error et eum molestiae.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...