Accounting Issues to Consider When Valuing Construction Firms

Business Valuation UpdateVol. 26 No. 4
April 2020
Pasquale Rafanelli, CPA/ABV, ASA, CVA, CBA, CFE, MAFF
industry analysis
industry analysis, accounting, revenue forecasts

Summary

Commercial and residential construction contractors use special methods of accounting that, if misunderstood by valuation analysts, can significantly impact a conclusion of value. This is a discussion of the main accounting issues for these firms.