Michael B. Lehner, CPA/ABV, CFE, ASA
March 20, 2017
business valuation

What’s normal? – The ins and outs of business valuation adjustments

To create an accurate picture of a company’s finances, a valuator likely will need to make various adjustments to “normalize” earnings. But determining what’s normal involves detailed analysis, as well as an understanding of the company’s current and future operations. This article talks about how appraisers determine whether to make discretionary, discount-related, or other adjustments to better reflect the future cash flow a prospective buyer could generate from a company’s operations.