You commonly hear an equity firm or VC partner claim, we invest in the people and when it comes to costs, human capital usually represents nearly 70% of all operating costs. Human capital risk is the real risk, but most investment firms don’t focus investment decisions and deal valuation not on quantifying the people or [...]
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Tagged as:
competence,
emotional,
Emotional Intelligence,
financial,
financial risk,
human capital assessment,
investment,
private equity,
risk management,
social,
VC
The valuation of a company usually involves 4 areas: physical capital, financial capital, intellectual capital, and human capital Valuation is a combination of science, art, and straight voodoo (Enron anyone???). Voodoo aside, when I recast these valuations from a new angle, I see each relies, in their entirety, on people: physical capital – people are [...]
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Tagged as:
assets,
capital,
Enron,
enterprise application,
financial,
human capital assessment,
knowledge,
motivation,
project work,
risk,
skill,
stakeholder