By Tim Vipond, Corporate Finance Institute Over the years I’ve spent a lot of time thinking about and working on business valuations across a broad range of transactions. Given that I’m a visual learner, I thought it would be helpful to illustrate my thoughts in a diagram. Top Down vs. Bottom Up As I look at the diagram it logically flows from top to bottom, however, when building a financial model to value a business I usually think about it bottom up, and in an iterative way. I start in the bottom left corner of the diagram with historical financials, working my way…
How I Think About Business Valuation (Infographic)
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