Archive 2011-37: Techniques for Determining Technical Accuracy




Techniques for Determining the Technical Accuracy and Credibility of a Valuation Analysis: The Quality Assurance Process

Presented by
James R. Hitchner, CPA/ABV/CFF, ASA, and Mark Kucik, CPA, CVA, CM&AA

Webinar 37 Broadcast Date: June 1, 2011

This session presents a detailed process for reviewing the technical accuracy and credibility of a valuation analysis and report. The presenters use an organized checklist format that allows the technical reviewer to determine whether the valuation data sources, assumptions and methods are
reliable and supportable. This process can be used for quality assurance and technical reviews in litigation, in internal senior staff reviews and in
reviews by regulatory groups.

A note about this program
: In February 2011, following the VPS STRAIGHTtalk webinar on “How to Review a Valuation Analysis and Report,” we received feedback from attendees who
wanted to go deeper into how a reviewer determines the technical accuracy of a valuation analysis. They wanted to know how to check the accuracy of
the numbers and assumptions. In response, we developed this program, focusing on the practical, detailed process required to check quality and
eliminate bias. Not only are these techniques invaluable in a litigation engagement, but they are a great training tool and method for evaluating your
own work.

Webinar Outline:

  • Detailed checklist technical review
  • Good and bad data sources and uses
  • Correct and incorrect normalization adjustments
  • Valuation method issues and input testing including Capitalization of cash flows, Discounted cash flows, Guideline public company, Guideline company transactions, and net assets

  • S corp. adjustments
  • Discounts and premiums – the models, the data sources and what works
  • Proper reconciliation of values
  • A “bias score sheet” method for determining intentional or unintentional biases

    Learning Objectives:

    • The participant will learn how to perform a technical review of any kind of business valuation and /or report of an equity/ownership interest
    • The participant will learn how to use a newly developed technical review checklist to determine whether a valuation analysis and report are
      credible, reliable and supportable
    • The participant will learn what the “best practices” are in preparing and presenting a valuation
    • The participant will be alerted to common errors and unsupportable uses of data, assumptions, methods and applications
    • The participant will learn about testing/sensitivity tools in preparing technical reviews
    • The participant will learn how to prepare a “bias score” using a newly developed valuation bias score sheet

    Included in this downloadable archived webinar package:

    • Audio/Video file
    • Webinar transcript
    • Original Webinar handouts including the Technical review – Valuation analysis and report checklist and Bias score sheet

    The archived webinar package is an Adobe Presenter PDF file that allows you to view the video of the webinar with the synced audio so that you see the presentation just as it was presented “live.” The Presenter format also allows for easy navigation through the webinar so you can quickly go to a specific section in the presentation. The handout materials are included in the file. To view the Webinar Presenter file, you must have Adobe Reader software version 9 or higher. You can download the free current version of Adobe Reader at Please note that CPE is only available for live webinar broadcasts.

Additional information

Weight 0.00 oz