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The Corporate Life Cycle: Insights from Aswath Damodaran

The Aging of Businesses

Aswath Damodaran, a renowned professor of finance, has just released a new book on the corporate life cycle and its implications for business investment and management.
Damodaran draws parallels between the aging process of human beings and the life cycle of businesses. Just as humans gain privileges and face limits as they age, companies also go through similar stages.
Many companies refuse to accept the reality of aging, with consultants and bankers telling them they can stay young forever. Damodaran argues that the healthiest thing a company can do is to "act its age" and embrace the stage it is in.