Strategic Capacity in DCF and Market Comp Valuation: A Guide for leaders
Part 1: Definitions and Insights Part 2: A Strategic Dialogue between the advisor and her CEO client In advance of releasing two DCF calculations of...
2 min read
George Sandmann, Founder
:
Jun 25, 2025 8:43:00 AM
In advance of releasing two DCF calculations of value in the CLARITY™ software, here is a discussion of the relationship between Strategic Capacity and value. Check it out:
Scene: Growth-Driver Jane and CEO Andrew discuss due diligence preparation.
"Andrew, there are six areas that you should imagine as your levers for value creation. We’ll analyze your value using both both market comps and DCF projections—but each relies heavily on one thing: Strategic Capacity. This is what will define how much trust the market can have in your future cash flows. Let’s run through them:
Andrew was pleased. “This totally reframes our priorities. Strategic Capacity should be the core of our valuation story, thank you. No one has explained it this clearly before, I’m looking forward to working with you and getting it done.”
“Thanks Andrew. You’re exactly right: let’s make the business not just bigger—but stronger. When would you like to begin?”
Part 1: Definitions and Insights Part 2: A Strategic Dialogue between the advisor and her CEO client In advance of releasing two DCF calculations of...
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