No investor sets out with the intention to buy high and sell low. However, that’s often how deals turn out, particularly pricey startup acquisitions carried out under much frothier market conditions.
In recent weeks and months, we’ve seen increasing evidence of this money-losing dynamic at work. Public companies that bought startups at prevailing valuations a year or more ago are now selling those assets at steep writedowns. Others are holding on, but with big losses on the books. READ MORE