Projected Post Sale Cash Flow

You use the Projected Post Sale Cash Flow worksheet to project the business's cash flow following the sale. The worksheet incorporates the Hypothetical Terms of Sale. The worksheet tests to see if the business will have positive cash flow in a real world deal. If it does not, you should reconsider your conclusion of value. You set the number of future cash flows on the Assumptions sheet.

Set the Projected Pretax Income

The projected pretax income amount for the current year comes from the Adjusted Summary Income Statements. You can overwrite this formula. For help restoring the formula, see Restoring Cells.

Enter a Growth Rate

Enter a growth rate in the first white input cell. The worksheet will project cash flows for the selected number of years.

Enter an Income Tax Rate

Enter an income tax rate in the second white input cell. This rate should include both federal and state income taxes.

Set the Non-Cash Expense Amounts

If the Depreciation/Amortization and Non-Cash Expense amounts do not seem realistic, enter new amounts by overwriting the blue text cells.