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 firm as long as expected.

Question

Quizplus · Accepted Answer

The potential loss of key people can have a significant impact on the value of the business, and therefore, it is important for analysts to consider this in their valuations.

In Valuing a Business, Analysts Must Also Consider Whether It