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RESEARCH PRODUCT

A Model for Estimating Cash Flows in Firms Backed by Venture Capital

Elisabeth BustosIván ArribasGregorio Labatut

subject

FinanceSocial venture capitalOperating cash flowFree cash flowbusiness.industryCash flow statementCash flowBusinessMonetary economicsVenture capitalCash managementDiscounted cash flow

description

Venture Capital only backs firms for a short period of time. When the time to exit arrives, the firm must inevitably be valued in order to obtain a basis for negotiating the exit price. Discounted cash flow is precisely one of the valuation methods that are used most by Small and Medium-sized Enterprises (SMEs).

https://doi.org/10.1007/978-3-642-38279-6_6