FVC2436. Valuing a Cash Business (Gasp!)

Valuing a cash business can have many pitfalls such as:

• A lack of supporting financial documentation
• The inability to verify revenues and expenses
• The potential underreporting of income

Challenges can be overcome by identifying cash-based nuances to consider when undertaking the valuation assignment and with additional due diligence. This presentation will provide valuation analysts with various tools to produce a supportable opinion and defend their conclusions of value with confidence.

Learning Objectives:

• Distinguish the businesses that operate primarily with cash.
• Recognize the risks of valuing a cash-based business.
• Identify how to quantify potential cash-based normalization adjustments.
• Identify available source documentation to support valuation conclusions.