The Myth:
Use the income, market, and asset approaches — then simply average them.

The Reality:
Different approaches carry different relevance depending on the company’s circumstances. Weighing them equally can misrepresent the most accurate indicator of value.

Why It Matters:
Incorrect weighting can mislead SBA lenders, buyers, and sellers about true economic reality.

Practical Tip:
Reconcile approaches thoughtfully — giving more weight to the method(s) best supported by the facts.