It's a tough time to try new appraisal methods...

"There's nothing better than a solid template when appraisers start to do the guideline public company method," says Tim Lee (Mercer Capital) on this morning's BVR webinar on "Errors, Challenges and Omissions in appraisal reports."   "As with other methods, the templated approach to presenting public equity data will keep you out of trouble with judges," and Hood cites USPAP 9 and 10--and the many appraisal reports that have been challenged--to let appraisers know that they need to "develop and communicate" clearly on all aspects of the method.  How are you going to build your story on

• the number and type of comparables
• the relationship of characteristics of the guideline companies
• the comparables that were excluded, and
• all the other judgements you made in applying this method

"I just did a report where the adjustment of one factor in the method made the difference between a $5 million  and a $7 million conclusion," Lee admits.