A key step to improve your discounted cash flow analyses
Business owners and financial analysts who conduct discounted cash flow analyses need to extend not only the income statement, but also the balance sheet and cashflow statements. It’s pretty easy to spot overly optimistic estimates this way, and easy errors will pop up; for instance, that you’ll have no working capital to support the supposed growth after year three. Not the kind of mistake you want to make when meeting with VC’s or bankers (or when you’re across the table from a possible acquirer).