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

M&A Terms Every Business Owner Should Know

Class VI Partner

Adjusted Net Book Value Adjusted Net Book Value is the Book Value of a business that has been adjusted to reflect the current market value of the assets and liabilities of a company. In this case, an adjustment to the value of these assets is required to determine Adjusted Net Book Value.