Question

In: Accounting

In regards to the market approach in business valuation, there are various factors regarding the reliability...

In regards to the market approach in business valuation, there are various factors regarding the reliability of benchmark multiples to value a private firm. Identify one such factor and discuss how it affects the degree of reliability of the benchmark price multiples.

In addition, discuss what you might do once you establish that benchmark data is not ideally reliable. Would you simply avoid using the market approach or could you do something else?

Solutions

Expert Solution


Related Solutions

In regards to items and scales why is reliability and validity important. Please provide various types...
In regards to items and scales why is reliability and validity important. Please provide various types of validity in answer.
In regards to Alcohol, there are various special populations regarding alcohol use, and addiction. Which group...
In regards to Alcohol, there are various special populations regarding alcohol use, and addiction. Which group is the most vulnerable?
1.Which of the following is a commonly used cost approach in business valuation? Multiples analysis approach...
1.Which of the following is a commonly used cost approach in business valuation? Multiples analysis approach Capital cost approach Transaction cost analysis approach 2. The two market approaches commonly used in the business valuation are multiple analysis and: project analysis. transactions analysis. market analysis. NPV analysis. 3. The transaction approach is difficult to use because: transactions data are typically as reliable as the data available for multiples analysis, especially when they are associated with a private firm. transactions involving the...
Discuss the factors that contribute to the reliability of a forecast.
Discuss the factors that contribute to the reliability of a forecast.
Name three broad approaches to business valuation and provide pros and cons for each approach.
Name three broad approaches to business valuation and provide pros and cons for each approach.
Name three broad approaches to business valuation and provide pros and cons for each approach.
Name three broad approaches to business valuation and provide pros and cons for each approach.
The Free Cash Flows Valuation Approach. Explain the theory behind the free cash flow valuation approach....
The Free Cash Flows Valuation Approach. Explain the theory behind the free cash flow valuation approach. Why are the free cash flows value relevant to common equity shareholders when they are not cash flows to those shareholders, but rather are cash flows into the firm?
The Free Cash Flows Valuation Approach. Explain the theory behind the free cash flow valuation approach....
The Free Cash Flows Valuation Approach. Explain the theory behind the free cash flow valuation approach. Why are the free cash flows value relevant to common equity shareholders when they are not cash flows to those shareholders, but rather are cash flows into the firm? Please i need a new answer.
How does the Information Approach differ from the Valuation Approach
How does the Information Approach differ from the Valuation Approach
Define reliability, failure, and normal operating conditions. Identify and list the various ways to improve reliability.
Define reliability, failure, and normal operating conditions. Identify and list the various ways to improve reliability.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT