Originally published: 19/03/2018 13:23
Publication number: ELQ-33328-1
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Valuation & Investor Modelling - Spark Financial Model

This video covers the valuation and investor sections of the model. Relevant for those who wish to sell in near future.

The valuation section helps you to provide an estimated value of your business beyond the 5 year forecasting period of the model. Some basic valuation concepts are covered in video "Valuation Concepts," and could be useful to watch prior to this video. If you have no interest in the value of your business because you plan to own and operate it for the foreseeable future, then you should skip ahead to the 'Investor Assumptions' section of the video.
The first thing you should do is set a discount rate for your business. This is the return used to discount investor or owner cash flows bringing them to a present value or an amount someone might pay for your business today. Setting that at 15%, the next thing to do is to pick a valuation methodology for your year 6 onwards.

Watch this video for a tutorial on how to manage this section of the model so that you can have an idea of the value of your business.

If you'd like to purchase the Spark Financial Model, you can do so here:

Length: 4 minutes 22 seconds

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