Business contingencies – What are they and why should you care?
Abstract: In a perfect world, business contingencies — that is, gains or losses arising from an anticipated event — wouldn’t exist. In this imperfect world, however, they must be factored into many appraisals. In cases where a firm number is required, a valuator must use his or her best judgment to quantify contingent gains or losses. In other instances — such as business transactions, mergers and acquisitions, or divorce valuations — an appraiser can help the parties design provisions that adjust the terms once the contingency has been resolved.