Title: Evaluation of Growing Business: Which Method, What Risks?
Abstract: Evaluate a growing company is always a difficult exercise because the valuation depends on the appreciation of many factors that vary depending on the person performing the evaluation: manager, shareholder, venture capitalist, etc. This article aims to present the methods used to evaluate this type of firm, their implementation and in particular the parameters to be considered in the assessment (cash flows and the discount rate) and the most common mistakes. This often results in an initial undervaluation as the entrepreneurs of the most promising projects find themselves unmotivated.
Publication Year: 2014
Publication Date: 2014-08-29
Language: en
Type: preprint
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