Exit this survey Normalization Adjustments Survey Background Question Title * 1. What are your top two areas of practice? Shareholder Disputes Divorce Financial Reporting Tax M&A Other Question Title * 2. Please identify the states in which you practice: AL MT AK NE AZ NV AR NH CA NJ CO NM CT NY DE NC FL ND GA OH HI OK ID OR IL PA IN RI IA SC KS SD KY TN LA TX ME UT MD VT MA VA MI WA MN WV MS WI MO WY Question Title * 3. How many personnel in your firm hold at least one of the following designations:(please enter a number for all that apply) ABV ASA AVA CBA CVA MCBA Question Title * 4. How many engagements are you personally involved in annually 1-5 6-15 16-30 30+ Question Title * 5. What percent of your engagements fit into the following revenue ranges: Percentage $0-$1M 0-25% 25-50% 50-75% 75-100% $0-$1M Percentage menu $1M-$10M 0-25% 25-50% 50-75% 75-100% $1M-$10M Percentage menu $10M-$50M 0-25% 25-50% 50-75% 75-100% $10M-$50M Percentage menu $50M+ 0-25% 25-50% 50-75% 75-100% $50M+ Percentage menu Question Title * 6. Do you perform financial analysis (bench marketing) before or after you normalize? Before After Both Neither Question Title * 7. What percentage of your engagements have normalization adjustments that change the benefit stream used in the valuation by the following percentages?For example, if the benefit stream before normalizations was $100 and the normalization adjustments increase the benefit stream used in the valuation calculation by $50; this would reflect a 50 percent change in benefit stream. Percentage Change in benefit stream is <10% 0-25% 25-50% 50-75% 75-100% Change in benefit stream is <10% Percentage menu Change in benefit stream is 10-30% 0-25% 25-50% 50-75% 75-100% Change in benefit stream is 10-30% Percentage menu Change in benefit stream is 30-60% 0-25% 25-50% 50-75% 75-100% Change in benefit stream is 30-60% Percentage menu Change in benefit stream is 60-100% 0-25% 25-50% 50-75% 75-100% Change in benefit stream is 60-100% Percentage menu Change in benefit stream is 100% + 0-25% 25-50% 50-75% 75-100% Change in benefit stream is 100% + Percentage menu I have no idea. 0-25% 25-50% 50-75% 75-100% I have no idea. Percentage menu Question Title * 8. Do you consider the impact of a compensation adjustment (or other-control based adjustments) on value, prior to making the adjustment? On Average, Yes On Average, No Data Sources Question Title * 9. What data sources do you rely on for benchmarking? BizMiner Integra Pratt’s Stats Public Comps RMA Profitcents Specialty Industry / Association Report Other Question Title * 10. What data sources do you rely on for compensation benchmarking? BizMiner ERI Integra Payscale Pratt’s Stats Public Comps Salary.Com Specialty Industry / Association Report Other Types of Adjustments Question Title * 11. Do you adjust for non-recurring expenditures? On Average, Yes On Average, No Question Title * 12. What percentage of your engagements involve the following adjustments?(please enter a number for all that apply) Officers Compensation Related Party Compensation Perquisites Meals and Entertainment Rent Transportation Benefits Non-Operating Assets on Balance Sheet Non-Operating Income and Expenses Personal Loans Pension Liabilities Environmental Hazard Liabilities Signing Bonus Fines, Fees, Settlements, Penalties Inventory Method (FIFO vs. LIFO) Collectability of Receivables Depreciation – Book vs. Tax Other Question Title * 13. If you selected "other" above, please specify: Question Title * 14. Do you use historical unadjusted or normalized capital expenditures, depreciation, and working capital? Always Historical Always Normalized On Average, Historical On Average, Normalized Question Title * 15. Do you use a normalized capital structure when calculating the cost of capital? On Average, Yes On Average, No Control vs. Minority Question Title * 16. Do you use Mergerstat data as the primary support for control adjustments? On Average, Yes On Average, No Question Title * 17. Do you believe Mergerstat Data on average produces reasonable control discounts/premiums? On Average, Yes On Average, No Question Title * 18. Do you believe that the Mergerstat Data can actually overstate or understate the proper control premium/discount for a specific company? On Average, Yes On Average, No Question Title * 19. Do you make owner compensation adjustments in controlling interest valuations? On Average, Yes On Average, No Question Title * 20. Do you adjust non-owner employee compensation in controlling interest valuations? On Average, Yes On Average, No Question Title * 21. Do you make owner compensation adjustments in minority interest valuations? On Average, Yes On Average, No Question Title * 22. Do you adjust non-owner employee compensation in minority interest valuations? On Average, Yes On Average, No Question Title * 23. Do you consider an adjustment to owner’s compensation a normalization adjustment or a control adjustment? Normalization Adjustment Control Adjustment Question Title * 24. Which of the following techniques do you use when applying the income approach in a minority interest valuation: apply DLOC to normalized control value use actual minority cash flows to value interest adjust expenses of independent owner and then adjust to the reasonable expectations of a minority interest holder Commentary Question Title * 25. How do you distinguish between normalizing adjustments for a control value and those for a minority value? Question Title * 26. What is usually the most significant normalizing adjustment and how do you go about making it? Question Title * 27. Have you ever had any normalization adjustments disallowed (court, audit, etc.)? If so, please elaborate. Question Title * 28. What is the most common mistake you see people make relative to normalizing adjustments? Question Title * 29. When do you not consider normalization adjustments? Question Title * 30. Are there any divorce specific normalization adjustments in your area that you do not make for any other type of engagement? Question Title * 31. What is the strangest normalization adjustment you have made? Question Title * 32. How do you balance the cost/benefit aspect of normalization adjustments? Question Title * 33. What normalization adjustments are problematic for you? Question Title * 34. Would you be interested in specific training relative to this area? Yes No Question Title * 35. Please provide any additional commentary. Done
