Although not always the case, management forecasts are typically doomsday forecasts
when the owner is going through a shareholder dispute and overly optimistic when it is time to sell the business. Appraisers should explain all their forecast assumptions in the report. They should be supported with unbiased factors in the economy and industry. The reader shouldn't take any forecast at face value. If the forecast is not explained clearly, the user of the appraisal should get a second opinion.