FVC2007. Market Approach: How Similar is Too Similar

Market multiples are often touted by buyers and sellers in negotiating prices for mergers and acquisitions. Appraisers use the market approach, but often limit the number of transactions they consider due to companies not be "similar enough" and may discount the approach all together to rely only on the income approach. This session will discuss the importance of considering the market approach alongside the income approach and how to use the market approach by expanding your definition of "similar".

Learning Objectives:

• Discuss market data and how to use it alongside the Income Approach
• Discuss ways to expand your number of transactions to consider and adjustments that can be made to the market data to correlate with the Income Approach.
• Identify general market data and rules of thumb and how to use alongside actual transactions