Earlier this week, Joel Sherman published a thought exercise about the cost of J.A. Happ. It got me thinking about trying to establish objective value when we talk about prospects, and the natural divide between two sides in a transaction. A buyer will always think that their offer is worth more than it probably is, while a seller will almost always think their product is worth more than the offer. This gulf is resolved either by establishing an equilibrium price or the buyer and seller walking away from the table.
While I was thinking about this concept, my thoughts strayed to the cost of a bigger, flashier starter.