Stealth • 3m
Here's what ChatGPT has to say about this. 1. Pre-IPO Valuation Management Lowering the valuation before an IPO to reset expectations and make stock prices more attractive post-IPO. 2. Employee Stock Option Benefits Lowering valuation allows employees and executives to receive more shares at a lower price, benefiting them when the value rebounds. 4. Strategic Buyback: A lower valuation triggers shareholders to sell, allowing the company or insiders to buy back shares cheaply. 5. M&A or Private Equity Target: Cutting valuation makes the company attractive for acquisitions or private equity investment. 6. Avoiding Antitrust Scrutiny: Lowering valuation to avoid attention from regulators concerned about market dominance.
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