> An important component in this calculation
> is not just the actual cost to build the
> technology but the opportunity cost of the
> time it would take them to do so.
Of course the time to build the technology is part of the actual cost.
The opportunity cost might be the value derived from developing it in-house or acquiring a competitor.
Factoring in the opportunity cost may make buying a more attractive option. Keeping opportunity cost in mind can help the seller get a much better price than they would if they just considered the acquirer's cost to duplicate heir technology.
Now I understand that "time" can also mean time-to-market, and I see how that can turn into an opportunity cost. Thanks!
The former is like "spent time", but the latter is like "lost time".