In valuing a business, analysts must also consider whether it is appropriate to adjust the estimated value of the business for the likelihood that these "key people" may not remain with the company as long as expected.

Question

Quizplus · Accepted Answer

It is important to consider the impact of key people leaving the company on the estimated value of the business. If it is likely that they will leave sooner than expected, this may have a negative impact on the business and should be taken into account in the valuation process.

In Valuing a Business, Analysts Must Also Consider Whether It