Two recent articles from Business Valuation Update, published by BVR, may help UK valuers support the forecasts they select and the quality of the data they present in their business valuation reports. “Defining Terms: Forecasts v. Projections—Why Does It Matter?” argues that some valuers (and many users of business valuation analyses) confuse the difference between the terms “forecast” and “projection.” “Some people use them interchangeably, but these are formal terms found in the literature, so they should be used appropriately,” the article argues.
A second article from this month’s BVU
is “Eliminating Outliers in Financial Data Without Cherry-Picking
.” J. Richard Claywell
discusses one method (developed by Mark Filler
) for determining outliers that is defensible from the allegation of cherry-picking—that is, bias in selecting data to either suit the client’s wishes or to generate a specific result for the client.
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