We've mastered adjustments like control premiums and risk factors. Now comes the real art of valuation: combining multiple methods into one defensible conclusion.
Rarely does a single method tell the complete story. Professional valuers typically use 2-3 different approaches and weight them based on reliability and appropriateness.
Engagement Message
Why might using only one valuation method be risky?
Think of it like getting medical opinions. You might consult multiple doctors for a serious diagnosis, then weigh their advice based on their expertise and the quality of their examination.
Valuation methods work similarly - each provides a different perspective on value.
Engagement Message
Why are three thorough analyses more trustworthy than a single quick opinion?
The key question isn't "Which method is right?" but rather "How much weight should each method receive in my final conclusion?"
A method with excellent data and perfect comparables deserves more weight than one based on limited information.
Engagement Message
Name one factor that would make you trust a valuation method more.
Consider data quality first. A market approach using five highly comparable recent transactions trumps one using three-year-old deals from different industries.
Better data equals higher weighting. It's that straightforward in most cases.
Engagement Message
Which deserves more weight—and why: recent comparable sales or old dissimilar ones?
Method appropriateness matters too. For a profitable service business, an income approach might get 50% weight while an asset approach gets only 10%.
But for a real estate holding company, asset approach might dominate at 70% with income getting just 20%.
Engagement Message
Why would asset approach work better for real estate companies?
