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Business: The Theory of Value

27 Feb Business: The Theory of Value

Deal Capital relies primarily on the discounted cash flow to arrive at the value of a business. This method is generally recognized to be the most appropriate method for M &A purposes.

This method generally is best at capturing the full value potential of growth companies that have strong earnings in relation to equity. However, for some companies that have excessive assets, weak earnings in relation to assets, contract nature business, etc other valuation methods may provide more insight. In all cases other methods should also be considered to provide a sanity check to the discounted cash flow method.

 

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Nate Nead
Nate Nead is a licensed investment banker and Principal at Deal Capital Partners, LLC which includes InvestmentBank.com and Crowdfund.co. Nate works works with middle-market corporate clients looking to acquire, sell, divest or raise growth capital from qualified buyers and institutional investors. He is the chief evangelist of the company's growing digital investment banking platform. Reliance Worldwide Investments, LLC a member of FINRA and SIPC and registered with the SEC and MSRB. Nate resides in Seattle, Washington.
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