Week 13: Reading Reflection (Chapter 14)

1). The most surprising part for me was the section on Africa and Brazil. As the box mentions, these two regions were formally considered third world countries, and now they are quickly on the rise. Africa’s growth surge was in large part thanks to governmental action, and Brazil is experiencing its greatest economic growth in history. Their rising valuation has placed them both among the world’s most rapidly growing economic regions.

2). The most confusing part for me was the section on the vocabulary common in term sheets. Because we don’t use this terminology in our everyday language, it was a little harder to understand. The differences in the types of rights and the types of preferences can be a little confusing because we are less familiar with these terms.

3). My first question would be how he accumulated the checklist for analyzing a business? Because it encompasses so many different areas and is so long, I would like to know why he chose to include certain concepts and not break it up into e few smaller charts instead? My second question would be if the author himself has ever encountered emotional bias?  I think this is an easy term to apply to business because we tend to overvalue things that we have a personal connection to, so I’d be curious if the author himself has any experience with this.

4). I did not disagree with anything in this chapter. Understanding how to value a business is rather complex, but the author organized the material in a very logical manner and explained each concept well.