In which of the following steps would a venture capitalist be most likely to evaluate deals using multiples of current cash flows?
A)valuation
B)deal structure
C)value creation
D)deal flow
E)exit

Question

Quizplus · Accepted Answer

Multiples of current cash flows are commonly used in valuation methods, such as the discounted cash flow (DCF) analysis. Therefore, in the valuation step, a venture capitalist would be most likely to evaluate deals using multiples of current cash flows. In contrast, deal structure, value creation, deal flow, and exit are all steps in which the venture capitalist would be focused on different aspects of the investment, such as negotiating terms, adding value to the company, sourcing new deals, or planning the exit strategy.

In Which of the Following Steps Would a Venture Capitalist