8 Minefields Attorneys Should Avoid Before Presenting Your Valuation Report to the Court
Attorneys know that a credible valuation analysis requires a substantial number of hours by an analyst with a high level of expertise. When reviewing an expert valuation report, it is critical to identify the most common errors that can cause a court to discredit or even disregard a report.
The following checklist serves as a quick guide for attorneys to avoid the most obvious deficiencies:
1. Is the standard of value followed? Has the analyst carefully disclosed and defined the applicable standard of value? Has the standard of value been followed consistently throughout?
2. Are all three valuation methods considered? These include the income, market, and asset approaches.
3. Is the internal analysis consistent? For example:
a. Did the analyst match pricing multiples or capitalization rates to the wrong economic income measure?
b. Are current intangible asset operational data matched to different time periods, without appropriate adjustment?