> When selling a company, there's similar practices of looking at the current annual income, project growth over a few years, and offer a price based on that.

> When selling a company, there's similar practices of looking at the current annual income, project growth over a few years, and offer a price based on that. Precisely. That practice is establishing the goodwill value of the company. This is another word for expected future cash flows. If you've ever had a small company be acquired for more than it's asset value - you were the beneficiary of "goodwill".