Fundamentals

Every year, thousands of companies merge or get acquired for trillions of dollars combined. Yet studies consistently find that most deals fail to deliver their promised value. This Fundamental breaks down how M&A actually works: why companies pursue deals, what due diligence really uncovers, why synergies are so often overpromised, and what separates the transactions that create lasting value from those that quietly destroy it.

Every publicly listed company started with a bank transfer between friends or a maxed-out credit card. Between that moment and ringing the stock exchange bell lies a precise sequence of funding rounds — each with its own logic, its own investors, and its own trade-offs.

DCF, market multiples, asset-based valuation, Berkus, VC Method — business valuation isn’t one technique but a family of competing approaches that often produce wildly different numbers for the same company. Here’s how to read them, and when each one actually applies.