infolio

Chapter 23 - Vale’s valuation falls anyway

Irony.

The sabotage became public.

Our valuation dropped.

Not because investors believed Ethan’s staged incidents proved our company worthless.

Because the investigation exposed:

Weaknesses.

Governance questions.

Reputational damage.

The secondary transaction was postponed.

Estimated paper-value decline:

Hundreds of millions.

I did not lose hundreds of millions in cash overnight.

Private-company valuation is not a checking account.

Still painful.

A year later, after:

Independent audits.

Product fixes.

Client retention.

Governance reforms.

Our valuation recovered substantially.

Not completely at first.

May you like

That was fine.

A company that claims to sell trust should not expect trust to rebound on command.

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