When considering purchasing a company, another way to value the business is to examine what cash it will generate over a period of time.
- This can be in straight cash terms not taking into account inflation, price erosion etc.
- You may also wish to apply discounted cash flow principles to arrive at a net present value (NPV) for the company, or
- even an internal rate of return (IRR) on the purchase.
Also read:
No comments:
Post a Comment