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

Question

Quizplus · Accepted Answer

This is true as the departure of key people may have a significant impact on the business's future performance and cash flows, which can ultimately affect its value. Therefore, it may be appropriate to adjust the estimated value of the business to reflect this risk.

In Valuing a Business, Analysts Must Also Consider Whether It