A key step to improve your discounted cash flow analyses

Darrell Dorrell (Financial Forensics, Lake Oswego, OR) reminds appraisers that “if you do a DCF projection, you need to extend not only the income statement, but also the balance sheet and cashflow statements.”   He says “it's pretty easy to attack an opponent in court who has only extended the income statement.  Easy errors will pop up; for instance, that the company has no working capital to support the supposed growth after year three."