Whether art, science, or both, valuation is the most misunderstood concept in business.
Fair market value, fair value, transactional value, value to owner, there seems to be
endless definitions to the underling term of any valuation report. Then, if you have been
on the sell side of a deal, your valuation was twice as high as the buyside number.
It gets even weirder in divorce cases.
How can the valuation with business go through so many different ranges of value?
FSC approach is to get to a number that accurately reflects the relative business value
at the valuation date. By eliminating arbitrarily and plainly unrealistic, implausible and
patently misleading assumptions that have no foundation in reality,
the risk assessment of the business it more accurately defined.
In doing, so the narrower range of valuesreflect plausible out comes.
This is why you will see FSC engaged by both parties in a litigation or by the vendor and
seller in a transaction. Our reputation is to get a fair value that reflects an independent
approach to the consensus data available then negotiating the other information to
provide the balance of assumption data to rely upon. The value is mutually agreed
upon, litigation fades, deals are done, relationships maintained.
No zero-sum game here.