Remove Discounted Cash Flow Remove Specific Risk Remove Start-ups
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Data Update 4 for 2021: The Hurdle Rate Question!

Musings on Markets

In this post, I will start by looking at the role that hurdle rates play in running a business, with the consequences of setting them too high or too low, and then look at the fundamentals that should cause hurdle rates to vary across companies. US , Europe , Emerging Markets , Japan , Australia/NZ & Canada , Global ) 2.

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M&A Terms Every Business Owner Should Know

Class VI Partner

Start with this exit checklist. The higher the degree of risk or unpredictability of a set of future cash flows, the higher the discount rate. Often these are companies that are being financed by a private equity or investment firm to do a “roll-up,” or series of acquisitions in a particular industry.