This document is not a mandatory standard, but APEI’s opinion on good practice.
According to the 2003 Naulot report, the Discounted Cash Flow (DCF) method represents a major advance in multi-criteria analysis, since it is based on future prospects and enables a critical analysis of the business plan.
Principle of critical review
This principle leads the expert to consider all the data provided by management or external sources with a critical eye. The expert must assess the reasonableness of the business plan, which must be the one drawn up and validated by the company’s management. It is the expert’s responsibility to ask the company’s management, which is the only body competent to draw up forecasts, to amend them if they appear unrealistic in the light of the information held by the expert. The expert must also ensure that any recent changes made by management to the business plan have been communicated to him and must obtain the reasons for these changes.