Glossary
With over 200 terms in both English and French, our M&A Dictionary is designed to help you better understand the key words and concepts related to the sale oe purchase of a business in Canada.
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Discount
« Back to Glossary IndexCategory: Business Valuation
Discounting is the process of determining the present value of a payment or a stream of payments that is to be received in the future. Given the time value of money, a dollar is worth more today than it would be worth tomorrow. Discounting is the primary factor used in pricing a stream of tomorrow’s cash flows. In the context of business valuation, there are several types of potential discounts, such as discount for lack of control, discount for lack of marketability, key person discount, discount for lack of liquidity etc.
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