Financial Projections
Forecasts of a company�s future financial performance, used by buyers to assess the potential return on investment in an acquisition.
Implications
Estimates of a company's future financial performance, including revenue, expenses, profit, and cash flow, often used in business planning, budgeting, and investor communications to set expectations and guide decision-making.
Example
Example: A retail chain prepares financial projections for the next fiscal year, forecasting sales growth, operating expenses, and net income based on historical data and market trends, helping to secure financing from investors.
Related Terms
Different from financial forecasts, which are often shorter-term and may be updated frequently, financial projections are typically part of a formal business plan or long-term strategy.
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