Valuation Series

Lorne Groe has an interesting series going about valuation. I found the DCF post to be most interesting.

So often business owners create great models with unbelievable projections for a business that they are selling. If business had not been that good to date, why is it all the sudden getting better? And if it is getting better, why is the business being sold? Probably because the current owner is not the best owner of the assets and the buyer will provide better performance. Even so, why would the buyer pay for that performance if it is not due to the seller?