The capital structure of a business is the mixture of equity and debt it uses to finance its operations. The optimum capital structure is one which minimizes the weighted average cost of capital and thereby maximizes the valuation of the business.
Optimum Capital Structure for a Business October 27th, 2016Team
When a business is seeking funding it will usually require a valuation. There are various business valuation models which can be used including PE multiples, assets based and discounted cash flow techniques.
Programs such as Dragons’ Den and Shark Tank have highlighted the need for an entrepreneur to know their numbers and provide a reasonable startup valuation when seeking investment for a startup business and preparing for a shark tank or dragons’ den type pitch.
Know Your Numbers – Startup Valuation – Part 4 October 12th, 2016Team