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  • How do I account for working capital fluctuation in a discounted cash flow valuation?

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    Working on valuing a business with big variations in working capital during the year, so how do I deal with the possibility that the transaction closes at a time when working capital is very low? It seems that using the discounted cash flow method for valuation is essentially assuming an average working capital figure at the time of the transaction (which in this case is highly unlikely).

    business-valuation working-capital

    asked by caseyb1

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