Operations and valuation model

Written By Arani Satgunaseelan

Sometimes simplicity is key. This Excel model, mimics your operations for Year 1, then based on a growth project forecasts cash flow for 5 years. The forecast is important for the DCF valuation. This model was built for a business selling "widgets". Key inputs required from user:

  • Forecast annual business growth assumptions (Row 28)

  • Revenue, variable and fixed cost streams (any blue cell)

  • Appropriate discount rate to use to value your business based on your capital position

This model is ideal for a business operator who knows key drivers of their business, however it's all in their head, not on paper. It is intentionally simple and meant to provide a 'quick and dirty' valuation.

Please feel free to download, use and provide feedback to us.

https://vollardian.com/s/07032017-Operational-Model-and-Valuation.xlsx

Arani Satgunaseelan
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