How changing interest rates affect company valuations
Dan Gordon, CPA, John P. Corrigan, JD, MBA, CPA, and Norman Cooper
As noted in “M&A: How to maximize your pest control firm’s potential,” when using an annual free cash flow model for determining the enterprise value of a pest management business, one of the key factors used is the buyer’s minimum return on investment (ROI) and the buyer’s cost of capital, all stated as a percentage. […]