Introduction Consider this scenario, LendCo is an entity in the financial services space which lends money to businesses. LendCo creates various products such as car loans, mortgages, credit card loans and leases. These loan products have receivables in the form of principal repayments and interest payments, which the borrowers commit to settling over the agreed …

Have you ever developed a financial model for a client or your organization and later found out that the spreadsheet had errors? What did you do? Did you go to your supervisor or the client and tell them …? Person 1: “Oh, by the way, do you know the model we built for Project Y …

International Accounting Standard 40 (IAS 40) stands as a critical compass for enterprises engaging in investment property management in the intricate universe of financial reporting standards. Issued by the International Financial Reporting Standards (IFRS) Foundation, IAS 40 charts a course for companies engaged in real estate and other investment activities, providing a structured framework for …

You’ve spent weeks building the perfect valuation model. You’ve included growth forecasts, estimated costs, calculated discount rates, and determined a valuation range you’re confident in. But now comes the hard part – determining the right price for the business. How do you bridge the gap between your valuation and a price that will resonate with …

Terminal value plays a crucial role in forecasting the value of a business by considering its projected cash flows at the end of the forecast period. It is an essential component of the Discounted Cash Flow (DCF) valuation method, as it helps determine the present value of anticipated future cash flows. When calculating the terminal …