The market prices for privately held companies are typically viewed from a return on investment perspective (such as 25%), whilst publicly held and or exchange listed companies trade on a price to earnings ratio (P/E) (such as a P/E of 10, which equates to a 10% ROI). Thus, if a publicly traded company specialises in the acquisition of privately held companies, from a per-share perspective there is a gain with every acquisition that falls within these guidelines.
The market value of private companies is typically assessed based on their return on investment (ROI), which is often around 25%. Publicly traded and/or listed companies trade using the price-to-earnings ratio (P/E), which is often around 10, resulting in a 10% ROI. When a publicly traded company specializes in acquiring privately held companies, there's a profit per share for every acquisition that meets these criteria.