A business valuation is one of the most manipulation-friendly disciplines in professional services. The stakes are high and because of this, someone, somewhere, could find themselves motivated to move the number. For the valuation expert, understanding where legitimate (and permissible) advocacy ends, and intentional distortion begins is not simply an academic exercise. It is a professional survival skill, and increasingly, a legal one. The author discusses four schemes where fraud may occur and describes the red flags professionals need to recognize to identify fraud. The Setup The valuation was delivered to the client and the business appeared healthy. The revenue…