Newsletter Article March 2024
ESOP valuations rely heavily on forecasts and earnings reports. Appraisers try to correct for uncertainty by assessing the risk of a company not meetings its expectations, but the process is inherently uncertain. While forecasts predict the future, earnings reports are supposed to indicate what actually happened. Unfortunately, sometimes errors are found after the valuation has already been done. So now what? These questions came up recently in our inbox. Here is what we said.
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