I operate a small consultancy business, with profits, operating over the past 2 years. Wish now to extend it, adding people and technology. Have worked out a reasonable 5-year projection, showing revenues in Year 5 as $1.5 million with profits from Year 2 onwards, and cumulative cash flow at end Year 5 as $1.5 million. Need investment to make it happen. How could this revenue / profit stream be used to value the company today?

-- Gautam Sen Gupta (gautam@market-vision.com), November 09, 2000

Answers

The best advice I received regarding accounting is to talk to a qualified accountant because book-keepers are not necessarily accountants and the one thing I know I will never be is a qualified accountant. I don't know if these particular links will be of help but take a look and see if this is of interest to you.

http://www.sbaer.uca.edu/docs/proceedings/87sbi073.txt

http://203.26.177.207/root_brw/271097/brw22.htm

Fast Company recently provided some investment links that may contain pertinent information you may be looking for at

http://www.fastcompany.com/feature/00/res_financesites.html

M.

"To be or not to be that is the question" A quote by Willy Shakes. M Profile at: http://www.fastcompany.com/fasttalk/replypost.html? p=9738 Mantra of M. "Life is about Private Relations not Public Relations"

-- Mark Zorro (zorromark@consultant.com), November 11, 2000.