Making Sense of Confusing Definitions When Applying Standards of Value

Business Valuation Update
Business Valuation Australia
July 15, 2015

Summary

Determining and applying the proper standard of value is essential to any valuation. All valuers are familiar with the common standards—fair value, market value, and fair market value. Yet contradictions abound, and making the right choice is not always easy even for the experienced practitioner. A business valuation that applies an inappropriate standard of value can be misleading and lead to adverse consequences for both valuers and their clients.