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Analysis · Methods · 4 min
Method selection before benchmarking
Why a database search should not begin until the transaction, tested party and decision criteria are defined.
01
Benchmarking is not the first step
A search strategy depends on the tested activity, the available financial data and the selected method. Starting with the database encourages the facts to be fitted to an available range.
02
Define the analytical basis
- Accurately delineate the controlled transaction.
- Complete the functional and risk-control analysis.
- Test the availability of internal comparables.
- Select the method and tested party.
- Set comparability criteria before screening begins.
03
Review effect
A documented decision sequence makes the final comparable set easier to challenge, update and defend.