Valuation experts say that the area of the valuation report that discusses discounts and premiums is the one they struggle with the most, according to an ongoing survey by Rod Burkert (Burkert Valuation Advisors). Four out of 10 (42%) respondents cite this area as the most problematic for them, followed by the economic overview/industry outlook section, cited by 24% of respondents. Other areas respondents struggle with are the sections that deal with valuation approaches (14%), company background (10%), and synthesis/conclusion (10%). “On one hand, the large discounts and premiums percentage is not surprising,” says Burkert. “On the other hand, given all of the articles, books, and CPE sessions discussing this topic, people aren’t getting it.”
Burkert has been conducting this survey over the past four years by polling attendees in the report writing webinar series he has been conducting for the National Association of Certified Valuators and Analysts (NACVA). The full results of his survey along with his commentary are in the October issue of Business Valuation Update.
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