Uses and Abuses of Market Data: An In-Depth Look at the Tools of Our Trade

The transaction databases are a rich source of valuable information that can be used to strongly support your valuation. However, for the uninitiated and unwary, misuse of the information provided by the data-bases may seriously undermine your opinion of value. This article tells you how to get reliable results from proper use of the data.

Although we have made every effort to present the most accurate information, we make no representations or warranties with respect to its applications to a particular valuation assignment. Each appraiser should analyze his or her own situation carefully when determining the appropriate use of market data.

Contributor Notes

Nancy J. Fannon, ASA, CPA•ABV, MCBA and Heidi P. Walker, ASA, CPA•ABV are employed by Fannon Valuation Group in Portland, Maine. This article was adapted in part from “The Direct Market Data Method: Common Errors in Application and a Closer Look at the Transaction Databases,” CCH Business Valuation Alert (September 2003), copyright CCH Inc. Reprinted by permission of the publisher.