The Accuracy Check questionnaire is a series of questions that captures additional data points required to normalize (adjust) a valuation and provide a more accurate analysis.
The preliminary analysis produced by the platform is based only on the provided financial data (i.e. year-end statements, Trial Balance, cloud connection, etc.) The analysis can (and should) be refined by completing the Accuracy Check questionnaire.
The Accuracy Check questionnaire is a series of questions that will capture additional data points required to normalize a valuation. Normalizing involves adjusting for certain items such as shareholder compensation, non-recurring expenses and revenue, and eliminating any anomalies that may have appeared in recent years to provide a more accurate analysis of the business.
Submitting an Accuracy Check questionnaire may adjust the valuation estimate (positively or negatively). It’s important to note that, very often, the answers provided will not result in a dollar-for-dollar increase or decrease. Many of these components are part of a larger equation and will still have an impact, but it’s not a simple dollar-for-dollar adjustment.