article thumbnail

The Role of Financial Projections in Business Valuation

Equilest

Assumptions and Forecasting Methodologies Financial projections are based on assumptions about various factors, such as pricing, market share, cost structure, and economic conditions. It is important to document and justify these assumptions clearly. The resulting net present value represents the estimated value of the business.

article thumbnail

Unlocking the Secrets of 409A Valuation: Understanding the Process, Methods and Best Practices

Equilest

The book covers key concepts such as cap table analysis, discounted cash flow models, and comparable company analysis, among others. Through real-world case studies and expert insights, readers will gain a practical understanding of the various factors that influence the valuation of early-stage companies.