Jul 16, 2018
In episode 73 of Financially Simple, Justin looks at the key concepts of Value Growth.
There are various terms used in business that might be unfamiliar or confusing, and knowing the correct definitions of such terms is important for many reasons - not least, knowing the valuation of your business. Justin goes over some of the terminology relating to Value Growth of your business.
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00:27 - The Key Language to Understand in Value Growth
02:29 - The Terminology
03:46 - What is Cashflow?
05:51 - Normalizing Cashflow
07:44 - Free Cashflow Calculation
09:34 - Working Capital
12:57 - Cap Rate vs. Discount Rate
15:38 - Risk Adjusted Cost of Debt
18:39 - Hurdle Rate
19:15 - Use of Capital
20:40 - Summary
Justin A. Goodbread, CFP®, CEPA,
CVGA, is a nationally recognized financial planner, business
educator, wealth manager, author, speaker, and entrepreneur. He has
20+ years of experience teaching small business owners how to
start, buy, grow, and sell businesses. He is a multi-year recipient
of the Investopedia Top 100 Advisor and 2018 Exit Planning
Institute’s Exit Planner Leader of the Year.
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