Discuss the most critical aspects of a 5 year pro-forma statement as it relates to risk and valuation
a.Certain factors will weigh more heavily in the attainment of desired financial results.
b.Some of those factors will be facts, but others will be assumptions
c.The assumptions must not merely be noted, but must be questions that the venture is aggressively trying to confirm/deny.
d.The ability to test, iterate, market, and research to answer critical assumptions will directly impact a company's valuation
e.More assumptions can make an investment riskier, but entrepreneurs who aren't able to confirm/deny assumption in time to adapt accordingly are a risky team to invest in.
f.

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The Answer of Discuss the most critical aspects of a 5 year pro-forma statement as it relates to risk and valuation
a.Certain factors will weigh more heavily in the attainment of desired financial results.
b.Some of those factors will be facts, but others will be assumptions
c.The assumptions must not merely be noted, but must be questions that the venture is aggressively trying to confirm/deny.
d.The ability to test, iterate, market, and research to answer critical assumptions will directly impact a company's valuation
e.More assumptions can make an investment riskier, but entrepreneurs who aren't able to confirm/deny assumption in time to adapt accordingly are a risky team to invest in.
f.

Discuss the Most Critical Aspects of a 5 Year Pro-Forma