Question: charles cornwell makes 3 statements regarding the valuation method used in private equity transactions during early stages of selling a fund to investors . 1.

charles cornwell makes 3 statements regarding the valuation method used in private equity transactions during early stages of selling a fund to investors .

1. venture capital investment in the early stages of analysis , emphasis is placed on the discounted cash flow approach to valuation.

2. Buyouts investment , income based approaches are used frequently as a primary method .

3. If a comparable group of companies exist , multiples of revenues or earnings are used frequently to drive a value of venture capital investments .

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