Business Valuation Theory

This is a bonus model with a more theoretical discussion of middle market business value and the risk / discount rate. A discount rate of 30-35% is typically used for the discounted cash flow valuation method and this module discusses where this surprisingly high numbers comes from and how it is calculated.  We also discuss using (or not using) the Weighted Average Cost of Capital (WACC) for strategic acquirors, and finally we look at how the use of debt can effect a transaction by looking at an actual valuation model with and without debt.pplemental Materials