Instructions |
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Instructions |
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The first step in using the DMDM Report workbook is to examine the Price to Sales charts with your subject company in mind. Use the charts to help you determine the range of sales appropriate for your analysis. Remember that the larger the number of transactions included in your analysis, the more accurate will be the result. At least twenty transactions are needed for a meaningful analysis of upper and lower 25% limits of the market (see the Price to Sales (2) and Price to DE (2) charts), and at least fifty transactions are needed for a meaningful analysis of the upper and lower 10% limits (Price to Sales (4) and Price to DE (4) charts).
Deselect any transactions that you want to exclude from your analysis. Deselecting transactions should be done only for objective reasons, such as the subject company being significantly larger or smaller than the companies in the transactions in question, and therefore the transactions may not be relevant to the value of the subject.
Note: |
The appraiser should disclose in some manner when transactions have been omitted from the data. |
For more help see Transaction Analysis Workbooks.