Five common errors in business valuation

BVWireIssue #144-3
September 24, 2014

Unrealistic cash flow projections head a list of common errors made in business valuations, according to Howard Johnson, managing director of Veracap M&A International Inc. and Campbell Valuation Partners Limited in Canada. In an article, Johnson explains this and the other common errors he sees: reliance on the multiple of EBITDA methodology, reliance on comparable company multiples, technical errors in rates of return and valuation multiples, and missing the balance sheet.

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