So many individuals, over so many years, contributed ‘‘real-life’’ scenarios that form the essence of practice leading to writing this manuscript— far too many to name, but I deeply thank you all. A few, however, made in-process contributions. I acknowledge the Honorable Richard Nass, ., .—business associate, friend, and Maine House representative. To ‘‘wade’’ in the waters of any technical or grammatical beginning is a tenacious undertaking, but to wade in mine necessitates uncommon stamina. Dick, your countless hours of critique are deeply appreciated from the bottom of my heart | Á Basic Guide for Putting a value on cash flow Taking industry and economic forces into account Valuing information technology and dot-coms Wilbur A Basic Guide for VALUING a Company Second Edition Wilbur M. Yegge John Wiley Sons Inc. This book is lovingly dedicated to my sons Andrew and Trevor and my daughter Denise. It is also dedicated to all buyers and sellers whose objective is to strike fair deals. Copyright 1996 2002 by Wilbur M. Yegge. All rights reserved. Published by John Wiley Sons Inc. No part of this publication may be reproduced stored in a retrieval system or transmitted in any form or by any means electronic or mechanical including uploading downloading printing decompiling recording or otherwise except as permitted under Sections 107 or 108 of the 1976 United States Copyright Act without the prior written permission of the Publisher. Requests to the Publisher for permission should be addressed to the Permissions Department John Wiley Sons Inc. 605 Third Avenue New York NY 10158-0012 212 850-6011 fax 212 8506008 E-Mail PERMREQ@. This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering professional services. If professional advice or other expert assistance is required the services of a competent professional person should be sought. This title is also available in print as ISBN 0-471-15047-9. For more information about Wiley products visit our web site at .