Usually when we do business valuation we focus on th audited financial statements where numbers have been verified by the auditors. However we still need to get the company’s internal financial statements because we need the latest information available.
Business valuation is forward-looking.
And internal FS give us the latest reality.
We need to understand:
- Are all revenue streams still the same?
- Has this year grown… or slowed?
- Are there unusual or one-time expenses?
- Has the company bought new assets?
- Has depreciation changed?
- Is cost structure shifting?
Internal numbers may still be draft.
They may later be adjusted for accounting standards.
But they tell us what is happening right now.
And when you are projecting future cash flows,
“a draft right now” matters as much as last year’s audited report.
In valuation work, audited FS give us credibility.
Internal FS give us insight.
Both are required.
#ORNA #BusinessValuation #DCF
ORNA Company Limited 
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