The template accommodates the inclusion of a terminal value in the calculation of an estimated business valuation. A terminal value basically provides for the inclusion of cash flows after the 5-year cash flow projection period in the company valuation and the inclusion of a terminal value should therefore only really be considered where there is an established trading history spanning a number of years, where the risk associated with the acquisition of the business is low and where the expected benefits from the cash flows of the business are certain to be derived for a period far exceeding the 5-year annual cash flow forecast period.

CopyFinancial > The template accommodates the inclusion of a terminal value in the calculation of an estimated business valuation. A terminal value basically provides for the inclusion of cash flows after the 5-year cash flow projection period in the company valuation and the inclusion of a terminal value should therefore only really be considered where there is an established trading history spanning a number of years, where the risk associated with the acquisition of the business is low and where the expected benefits from the cash flows of the business are certain to be derived for a period far exceeding the 5-year annual cash flow forecast period.