Most mistakes are made not in the analysis that is done, but rather in what is not
done. Failure to perform or provide any of the following could render a valuation
report useless in cases of litigation:

• State the date of the valuation and the date prepared
• Define the purpose of the valuation
• Define the standard of value (e.g. Fair Market)
• Conduct a site visit
• Include assumptions and limiting conditions
• Discuss:
  • Company background
  • Industry in which the company participates
  • Market in which the company competes
  • Competition
  • Economic environment in which the company competes
• Prepare a comparative financial analysis with industry performance
• Examine and discuss all common valuation methods
• Adequately define "earnings"
• Disclose assumptions and source of cash flow projections
• Define formulas - CAPM, WACC, Fama-French, Gordon Growth Model
• Apply the proper discount/capitalization rate to "earnings" as defined
• Adequately discuss and analyze guideline companies selected
• Discuss empirical data sources for premiums and discounts applied
• Reconcile values indicated by each valuation method examined
• Select one value
• Disclose sources of information contained in the report

Is your valuation analyst taking all of the above into consideration when preparing your
report?