Pro forma valuations are tricky.  The cold hard reality is it doesn’t matter that I based my financial model on well researched industry metrics, it doesn't matter what coupon rate I used in the discounted free cash flow analysis, it doesn't matter what the Chicago or HBS valuation methods indicate the value of my business.  Only one thing counts, what someone is willing to pay for it.  

Physical manifestations of yin-yang are simple, hot or cold, on or off, high or low.  Philosophical (or for those of use who have analytical degrees, intellectual) application in the real world is much more difficult.  The Daily Show with Jon Stewart a few days ago had a segment about news casters from CNN (predominately CNN although other news channels also partook in this violation of over simplification) insisted on distilling everything, without regard to complexity, into either good or bad categories.  For example is congress good or bad?  Before you yell out bad, remember it is one of the three branches of our government that has sustained this country for 237 years.

Ok, so is my financial model good or bad?  It is the center of debate, I’m not sure if that is good or bad.  The metrics / assumptions I used on the model are readily verifiable and are from respected sources.  I’m quasi confident this is good although investors always want to know the source, I assume the investors are skeptical about the data and this is probably bad.  The financial model is formula driven stemming from the afore mentioned assumptions.  I’m fairly confident this is good although analysts from investment firms dissect the financial model to see how it scales, what its sensitivities are and if they can replicate it using other financial modeling techniques, this is stressful so its bad.

Is Karmies good or bad, is the market for Karmies big or small, is the Karmies product desired or ignored?  Good or bad, yin and yang, it doesn’t matter.  At the end of the day the company will be capitalized at a value determined by a black box inside the head of the person writing the check.