Article: 'What's the value of this thing?' (valuation of Eastern European businesses)(Chairman's Agenda: Acquiring in Eastern Europe)

Some practical considerations in coping with the uncertainties of East Bloc business valuation.

Most business people would throw up their hands if asked to value a company operating amidst the accelerating political, economic, and social changes in Eastern Europe. Valuing Eastern European companies poses unique challenges compared with valuing Western firms; nevertheless, the same general concepts and approaches apply. As the move toward capitalism continues, the need for valuation expertise grows daily. Foreign capital is essential to privatization and allows companies to invest in more competitive and efficient technologies. In addition, public policy requires ...

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