Financial Projections

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What Will the Company Look Like in 3 Years

The buyer needs to understand the expected projections over the next 3 years.

You generally achieve this by showing the growth projection made over the last three years and continue that trend going forward.

A more supporting projection can be made from a well-planned marketing strategy as discussed in the Market Planning Model.

• Targeting new segments, introducing a new product line, and launching an aggressive promotional campaign allows you to make assessments that support the increased value of your company.

It is up to the buyer to calculate the effects of competition, economic conditions, the prevailing market, and what the buyer can accomplish.

The 3-year forecast should reflect income before depreciation, non-business expenses and owner salary and perks.