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M&A Valuation Methods: Your Essential Guide with 7 Key Methods

Valutico

The terminal value can be estimated using the perpetuity growth model or the exit multiple approach. By adding up all the discounted future cash flows and the discounted terminal value, the Net Present Value (NPV) of the business can be obtained.

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M&A Terms Every Business Owner Should Know

Class VI Partner

Discount Rate Discount Rate refers to the rate at which a stream of future cash flows is discounted to determine Net Present Value. Financial Buyer also refers to investors such as private equity firms , buyout firms, venture capital firms, or other professionally managed funds of capital.