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How to best prepare for an audit post-acquisition

E78 Partners

Audits are an essential part of ensuring that a company’s financial statements are accurate and compliant with accounting standards. Engage Third Parties Early: Engage valuation firms and appraisers early in the process, as these experts can help support audit preparation and reduce hassles later on.

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Data Update 1 for 2021: A (Data) Look Back at a Most Forgettable Year (2020)!

Musings on Markets

To illustrate, consider a practice in valuation, where analysts are trained to add a small cap premium to discount rates for smaller companies, on the intuition that they are riskier than larger companies. It is very likely that these rules of thumb were developed from data and observation, but at a different point in time.