1 min read. What is The True Income of the Company? In general terms, in most business valuations the value of a company is derived at by discounting or capitalizing the ‘true’ income or stream of cash flows that a potential buyer of the business will likely receive. For most privately-held companies, the actual income reported does not usually represent it’s ‘true’ future income. We have seen it to be widely different (higher or lower) than the actual income reported for the companies we valued. In some cases, a company that incurs losses or breaks even most years may turn […]
cash flows
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