It is surprising to see enormous attention for decreasing valuations of Zomato. Earlier, a great value deal used to be a news.. now decreasing valuations are getting attention. Valuations of two human beings cannot be same if there are multiple variables and factors to be considered. Internet based companies do not have much investments in fixed assets and properties rather they invest in human capital, intangibles and run on the success of their advertisement campaigns. Games of valuations are always interesting... for one agency Zomato may be priceless but for another valuer it may be worthless. Valuations are always based upon logical assumptions and current facts.
The business model is .... Zomato will bring a customer to a restaurant and Zomato will get a share.. plus advertising... Do we know we Indians are the biggest breaker of Indian Contract Act 1972. We do not understand and respect this law. No restaurants want to pay anything to Zomato.. they can pay once but not again . Once it gets popularity.. it forgets Zomato. Although Zomato gained popularity but it was used a navigator to reach a restaurants for once but not for ever. It has closed operations in various cities and it has fired many employees ... based upon news in public domain. These are the signs of suspecting going concern .. how can its valuations be attractive. If it is correct then HSBC has not committed any mistake... but if HSBC is wrong..Then Zomato has to search a new consulting firm to increase its valuations ..............but better would to understand the pulse of human beings , hotels n Restaurants and Indian advertiser... otherwise valuations cannot be attractive. Concept of Zomato is believable but lots of hard work and use of intellectual capitals are needed.
One billion dollar is a a big amount...practically the dream does not look to be so much costly. Buyers must be cautions before burning their fingers. Ultimately they are getting an idea not a tangible asset. If Zomato gets a buyer even at a lower value.. it may enter in to the deal and live life like a silent priest.
But its a good news for buyers...
They will start to search a company who can produce facts to diminish the negotiation power of controlling stake entity. All praise to HSBC who came up with bold step and now people knows HSBC does this type of business apart from banking.
Truth is always dirty and sour. There is a need to put a cap on soaring amount of Investment deals without adequate due diligence.
http://indianadvertisements.blogspot.in/2013/01/finally-good-news-for-bad-boys-skore.html
The business model is .... Zomato will bring a customer to a restaurant and Zomato will get a share.. plus advertising... Do we know we Indians are the biggest breaker of Indian Contract Act 1972. We do not understand and respect this law. No restaurants want to pay anything to Zomato.. they can pay once but not again . Once it gets popularity.. it forgets Zomato. Although Zomato gained popularity but it was used a navigator to reach a restaurants for once but not for ever. It has closed operations in various cities and it has fired many employees ... based upon news in public domain. These are the signs of suspecting going concern .. how can its valuations be attractive. If it is correct then HSBC has not committed any mistake... but if HSBC is wrong..Then Zomato has to search a new consulting firm to increase its valuations ..............but better would to understand the pulse of human beings , hotels n Restaurants and Indian advertiser... otherwise valuations cannot be attractive. Concept of Zomato is believable but lots of hard work and use of intellectual capitals are needed.
One billion dollar is a a big amount...practically the dream does not look to be so much costly. Buyers must be cautions before burning their fingers. Ultimately they are getting an idea not a tangible asset. If Zomato gets a buyer even at a lower value.. it may enter in to the deal and live life like a silent priest.
But its a good news for buyers...
They will start to search a company who can produce facts to diminish the negotiation power of controlling stake entity. All praise to HSBC who came up with bold step and now people knows HSBC does this type of business apart from banking.
Truth is always dirty and sour. There is a need to put a cap on soaring amount of Investment deals without adequate due diligence.
http://indianadvertisements.blogspot.in/2013/01/finally-good-news-for-bad-boys-skore.html
