An expert’s FMV opinion is worthless without sufficient, relevant, unbiased market data or evidence to support the opinion. A subject matter expert must have a basis for their opinion, such as facts, survey results, benchmarks, research, transaction multiples, etc. Sufficient data might include:
1. Survey sample size of 50 or more entries
2. 10 or more transaction multiples within a 5-year period
3. Robust research conducted by experienced and knowledgeable third-parties
4. Articles, whitepapers, and industry reports
A financial/numeric FMV conclusion should usually be stated within a reasonable range, such as plus or minus 5%, because FMV is typically not one specific number.