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A)Prepare an in-depth valuation estimate for Spaceman: a

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A)Prepare an in-depth valuation estimate for Spaceman: a. Asset Method (liquidation of assets)

b. Income Method (Value = Expected annual benefit stream/Required rate of return)  by estimating your free cash flow and capitalization rate (Discount rate - Growth) (Use the following assumptions in your calculations)               

                                i. The calculation will be for 100% of the business for a valuation date of 5/31/2018

                                ii. Assume the replacement salary and benefits for a manager to do the work of the owner would be $100,000

                                iii. Assume the tax rate is 21%

                                iv. Assume there is average risk for the Company-Specific Risk

B. Answer Questions:                   

                a. What do you think an acceptable range of value would for a purchase?            

                b. What seller add-backs would you accept? Why?          

                c. What red flags and potential risks do you see? How could you mitigate them?               

                d. What areas could you improve and how could you grow the business?