CANNABIS: The Heart of Valuation
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Common Valuation Methodologies continued:
Leveraged Buyout analysis: Since an LBO transaction generally alters the target company capital structure, this analysis includes pro-forma projections using post-acquisition assumptions. A DCF valuation is then conducted to determine if the proposed price and exit valuation contribute to an adequate return on invested capital.
Pre-revenue companies could also consider a variety of other valuation methodologies, including:
· Bill Payne method
· Berkus method
· Venture Capital method
· Risk Factor Summation method
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