There are three approaches to value: Income, Cost, Market approach and each approach looks at a business in different, but important ways. If you are doing the valuation and the approaches all come up with very different values, reconciling the approaches can be an important task in arriving at a reliable and supportable fair market value. This sessions will delve into ways to reconcile the approaches to arrive at values that corroborate each other.
Outline the 3 approaches and the important assumptions that are used in the approaches
Discuss how the assumptions in each of the methods correlate to other assumptions in the other methods
Discuss ways to adjust assumptions made to better correlate each of the approaches
Walk through valuation examples that initially start being far apart and to correlate and arrive at a better supported valuation conclusion