Making a Case for Using the Market Approach for Determining Fair Market Value

Jun 26, 2025

Dave and Lisa explore the intricacies of the market approach highlighting the importance of using reliable market data and multiple valuation approaches to achieve accurate results. They discuss how risk factors and company size influence valuation multiples and provide practical tips for applying these concepts in real-world scenarios. Key takeaways include:

• Combining income, market, and asset approaches helps mitigate the risk of skewed valuation results
• Understanding and adjusting for risk factors, such as customer and supplier risks, is crucial in determining accurate valuation multiples.
• Market multiples should be adjusted for forward-looking earnings and industry-specific risks to ensure they reflect the true value of a business.

Guest: Lisa Cribben, CPA/ABV, Partner, Hawkins Ash CPAs
Host: David Consigli, Jr. CPA/ABV, CDFA, Partner, FAZ Forensics

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• How to use MergerShark to improve your market approach | FVS webcast archive
• Valuation of Privately Held Companies Equity Securities Issued as Compensation
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