Exceptions to Standard Valuation Assumptions

Over the past two months, David Mesner, Senior Valuation Analyst for Ipreo Private Capital Markets, has presented a series of special reports focused on valuation.

In the first report of a three-part series, he offered best practices for documenting standard assumptions made during the valuation process, and followed that up by outlining specific subjective inputs and the ways they contribute to the reporting process.

In the final installment in his series, he discusses how and when a non-traditional valuation approach might actually provide, well, value.

Excerpt:

“In some instances, a subject company being valued has begun to generate revenue, but the most recent transaction is still the best indication of value. This could be due to specific pricing inputs that drove negotiations, or a situation in which the significant revenue generated is still not quite considered stable or significant in the eyes of the management team (or the preparer, for that matter).”

Read the entire report, the third in a three-part series: Exceptions to Standard Valuation Assumptions: Coloring Outside the Lines