AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
Understanding Valuation Models and ESOP Processes for Companies
Valuation models play a crucial role in ESOP processes for companies, emphasizing the connection between income approach values and market approach values. ESOPs typically lean towards income approach values, focusing on factors such as normalized cash flow, business risk, and weighted average cost of capital. By reducing risk and improving cash flow, companies can enhance their valuation through the ESOP process.