1) What are the assumptions used in the cash flow model. Are Revenue and Operating Income growth numbers realistic?
2) Use of management projections. When were they prepared (ie for use in valuation) are they materially different then other recent projections.
3) Projected profit margins are different from historical results (Gross Profit / EBITDA / Pretax income? Why?
4) Anticipated Capital Expenditures were not accounted for.
5) How does the valuation multiple used for the valuation compare to other transactions for similar companies during a similar period of time.