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EP15 - Bridge Over Troubled Water - The Historical Cash Flow and Forecasted Cash Flow Connecting To Your Valuation for an ESOP

Journey to an ESOP & Beyond

NOTE

Stability in Forecasting and Real Results

Forecasting stability relies on aligning forecasted cash flows with actual results. The process involves reassessing forecasts as needed and ensuring that the bridge between forecasts and real results is strong. A key aspect is to have confidence in the forecasted numbers by validating them against real outcomes before proceeding with deals or plans like an ESOP. The goal is to match predicted cash flows with actual 12-month trailing cash flows to avoid complications during deals.

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