Fulfillment of fundamental and standard requirements for income-based business valuations[Úroveň splnění základních a standardních náležitostí výnosových ocenění ve veřejných znaleckých posudcích]

The goal of the article is to examine how valuation reports published in the Czech commercial register meet the fundamental and the standard requirements for business valuation. The research is based on predetermined evaluation criteria, and it is performed on a sample of 184 valuation reports published in the commercial register during the year 2017. The fundamental requirements are defined by the basis of value and the value drivers. Without these, the valuation would have a very limited explanatory power. The standard requirements follow the principles defined by generally accepted valuation principles. The research showed that the fulfillment of fundamental requirements is generally significantly better than the fulfillment of standard requirements. Despite that, we have identified several essential malpractices we consider to be alarming. Thus, we consider the general quality of the valuations to be inadequate.