Week 13 Reading Reflection

I was surprised to hear about letters of intent and their varying levels of formality. In financial accounting, I learned a lot about company acquisition, mergers, and financial consolidation. However, I have not ever learned about the precursors and process required for these deals to be set up. I was confused when Kuratko mentioned that the degree of control an owner legally has over a firm affects its valuations. It makes sense that certain industries have more lax regulations than others but I don’t understand exactly where the company differences would arise. Therefore, I’d ask the author what he means by varying degrees of control and how that can change on a company basis. Perhaps this has to do with the amount of outstanding stocks or bonds. Or, maybe it involves the amount of stockholders equity left over after the business weighs out its assets and liabilities. Either way, other than my confusion with that concept, I think that the author was correct in everything he said.