Use the Correct Income Stream

5 (2 votes)

In the practice of business valuation, there are many judgment calls that must be made. There are many decisions that can go either way, depending on how the appraiser interprets the data. There are also certain decisions that actually have a right and a wrong answer. This article describes one of the most commonly seen errors in the application of a capitalization rate.

Shawn Hyde

CBA, CVA, CMEA, BCA

International Society of Business Appraisers

Shawn Hyde, CBA, CVA, CMEA, BCA has over 20 years of valuation and appraisal experience in numerous industries. He is a Certified Business Appraiser, Certified Valuation Analyst, Certified Machinery & Equipment Appraiser, and a Business Certified Appraiser. He has written and taught courses for the Institute of Business Appraisers (IBA), the National Association of Certified Valuators and Analysts (NACVA), and the International Society of Business Appraisers (ISBA). He has served on the IBA’s Education Board, and the IBA’s Board of Governors, and is a past Editor in Chief of the IBA’s professional journal, Business Appraisal Practice.