Rich Goeldner will be speaking at the NACVA Virtual Super Conference about “Advanced Issues Using the Single Period Capitalization of Cash Flow Model,” on June 18th and August 6th. www.BVFLSConference.com method
Can we still use the capitalization of cash flow method during the COVID19 economic recession?
This presentation addresses the difficult issues faced by business appraisers when using the capitalization of cash flow method. Presentation topics include:
- Identify when a business is a good fit for the capitalization of cash flow method vs. the multi-year DCF
- Estimating revenue levels and profit margins
- Addressing abnormal working capital levels
- Impact of capital expenditure levels & depreciation expense
- Methods used to estimate a normal debt financing level in the WACC for use with CCF Method
- Adjusting Cap. Rates to reflect the mid-year convention
- Calculated an estimated “blended” growth rate based on a super-normal growth phase
- Benefits & weaknesses of the capitalization of cash flow method, including COVID19 / recessionary environment
