A valuation report with errors is never a good thing and can hinder the purpose of the valuation to begin with. The ten most common errors found on valuation reports are:
- Failure to define purpose and standard of value
- Failure to discuss company background, industry, market, competition and economic environment
- Inadequate financial analysis
- Mathematical errors
- Use of formulas with no explanation
- Failure to define earnings
- Inconsistent application of discount or capitalization rates
- Leaps of faith regarding rates, premiums, discounts
- Improper use of comparable companies
- Lack of disclosure of information sources
Can your clients afford to have errors in their valuation reports?
Should you need business valuation assistance or have questions, please call one of our credentialed professionals at (615) 822-8342 or contact us via email.