Valuing Customer Relationships: Does the Distributor Method Miss the Mark?

Business Valuation UpdateVol. 19 No. 10
October 2013
Daniel Guderjohn, ASA
Robert Reis, CFA


Customer relationships are nearly always one of the identified intangible assets in purchase price allocations. While valuation of this asset has traditionally been carried out with the multiperiod excess earnings model (MPEEM), the distributor method (DM ...