FVC2439. Market Approach - Using General Market Multiples and Adjusting For Company Characteristics

Many individuals won't use the market approach because they can't find good comparable company transactions.  We don't use the same consideration when establishing our discount rate in the Income approach so why can't we use the same approach by looking at general multiples and adjusting for risk.  This presentation will delve into how to expand the use of the market approach by expanding your search for reasonable multiples to utilize.

Learning Objectives:

• Identify the market transaction data available to use in the market approach.
• Identify the different ways to approach the multiples to choose in the market approach.
• Determine the correlation of the income and cost approach when using the market approach.