In 2012, Teuer Furniture—a privately owned, moderately sized chain of upscale home furnishing showrooms in the United States—had survived the economic recession and was growing. As the firm was now on secure financial ground, a number of long-term investors, including several of Teuer’s original non-management investors, asked to sell their shares. Up until this point, Teuer had distributed its excess cash flow in the form of dividends and had avoided repurchasing stock from its investors because of the difficulty of valuing a private firm. The firm had never repurchased shares from its investors. Teuer’s decision of whether to finance the investor buyout from cash generated by the business or to seek new equity investors was postponed until a valuation of the business could be obtained. To begin the valuation process, Teuer’s chief financial officer, Jennifer Jerabek, and her finance team were asked to assemble a set of forecasts upon which the valuation and stock price would be based. Teuer Furniture was launched in 2003 to serve the demand for high-quality designer furniture sold in a high-touch environment outside of the major metropolitan areas. The firm opened its first showroom at the end of 2003 in Kansas City, Missouri, and had since grown to twenty-nine showrooms (see Exhibit 1). Teuer had concentrated on second-tier cities in terms of size in the Midwest and now had showrooms in Des Moines (Iowa), Columbia (Missouri), Kansas City (Missouri and Kansas), Lawrence (Kansas), and the outlying suburbs of St. Louis (Missouri). The current plan was to open an additional six showrooms over the next three years. As these showrooms would be in the same cities in which Teuer currently had showrooms, they would all be supplied from Teuer’s centrally located distribution center.