Day 6 – Reconciliation of Valuation Conclusions: An Attorney’s Guide To Understanding Business Valuation
In this episode of the Forensic Perspectives podcast, host Mark S. Gottlieb lays out the important factors to remember when determining your valuation method. Follow along as Mark walks us through mock scenarios to explain how to properly weigh various approaches.
Episode Highlights:
Mark recaps different methods discussed in the miniseries when it comes to valuing a business. (0:20)
How do you ultimately determine which methods should be used? (0:35)
Mark explains how to weigh each approach when more than one method is applied. (0:50)
Mark shows a mock scenario example of how to weigh value equally. (1:15)
How does the valuation of a business change when you weigh one approach more than the other, instead of equally? (1:50)
Key Quotes:
“We have examined the three different methods of our approaches to valuing a business: there was the asset, the market and the income approach. When you’re all said and done, the expert has to determine what methods are going to be used.” – Mark Gottlieb
“In some instances, only one method. But when two or more methods are being used, the appraiser has to determine what weight each method is going to be applied.” – Mark Gottlieb
“When reconciling the valuation conclusions, you have to pay close attention to the weight of each of the methods that have been employed.” – Mark Gottlieb
