VALUATION ECOSYSTEM
A complete process takes two or three expert reports.
Where cash is at stake in a transaction or dispute, projects will include the first two steps, otherwise they often are not.
FORENSIC ACCOUNTING
Forensic accountants determine whether the firm or its employees have carried out financial misconduct. If desired, forensic analysis is done by accounting colleagues prior to the valuation. It is recommended for litigation matters if access to the details and employees is made available.
QUALITY OF EARNINGS
A company's real earnings are only revealed by spotting and removing anomalies, time shifts, accounting tricks, bankrupt customers, or one-time events that skew the numbers. A valuation is typically based upon management's reporting of these issues. QoE analysis finds issues management is not aware of, or failed to disclose.
VALUATION
A business appraisal or valuation is an opinion of the economic value of a business based upon the viewpoint of either a buyer or investor. The cost approach, income approach and market approach are three ways to develop an indicator of value. For a USPAP compliant report, the valuer considers each of these approaches.