Closely Held Business Valuations: The Uninformed Use of the “Excess Earnings/Formula” Method

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American Society of Appraisers Business Valuation Review™
Fall 1984 Volume 3, Issue 3 pp. 4-8
Jeffery D. Fox, ASA

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Summary

According to the author, any appraiser relying heavily on the excess earnings/formula method of valuing closely held businesses should be cognizant of the number of criticisms that can be raised to discredit it. He believes that the method should be used only as a last resort.
Closely Held Business Valuations: The Uninformed Use of the “Excess Earnings/Formula” Method
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