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Published in:
2020 | OriginalPaper | Chapter
3. Growth and Business Sustainability
Author : David Hobson Myers
Published in: Sustainability in Business
Publisher: Springer International Publishing
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Abstract
This chapter introduces a discounted cash flow approach to valuation of business ventures and highlights the key elements of growth. The success of a business, sustainable or not, is dependent on its growth. Expansion of a business relies on expanding its markets’ reach (demographics), its innovation or creation of new products, and its capital structure (leverage) within a legal and governmental framework. The interplay of social distance and demographics highlights the markets that a business may expand as it builds customer relationships. Those relationships will be based on the marketing of innovative sustainable products to new markets. The role of leverage on capital structure will be laid out within a risk and return framework.