Why are there valuation differences between companies in the same space between Canada and US? Mcqueen says that other than a brief period more than a decade ago the gap has been a way of life for Canadian tech. Ruffolo says an overly frugal Bay Street is partly to blame. He says the reason networking gear specialist BelAir Networks agreed to be purchased by Ericsson this past February instead of go public in Canada was that the banker’s valuation was a fraction of the Swedish telecom giant. Ruffolo says he worries about low Canadian valuations because of the possibility of takeovers.
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