- NY Credits : 2.0
- TX Credits : 2.0
Valuation Methods - The Normalization of Earnings Updated
An important step in the business valuation process is the normalization of earnings. Many companies subject to business valuations are smaller, closely held companies. It is not unusual for such organizations to treat various financial items differently than the publicly held companies chosen as comparables. Thus, earnings often need to be normalized in order to make an effective comparison. Even when market or income business-valuation approaches are used, normalization adjustments are frequently needed for the financial statements of closely held companies.
This basic level course is most beneficial to professionals new to this topic who may be at the staff or entry level in organization but also for a seasoned professional with limited exposure to this topic.
Upon successful completion of this course, the user should be able to:
describe the normalization of earnings, and
demonstrate the normalization of earnings.