Why we still need a management interview (even when we already have all the documents)

When doing a business valuation, yes — we have an information request list (IRL).
Yes — we collect solid documents.
Yes — we look at audited financial statements.

But documents only tell us what happened.
They don’t tell us why.

For example:
• Why did revenue drop last year?
• Why did interest expense suddenly spike?
• Was it a one-off event — or will it continue?

And the most important part…

We need to understand the logic behind the forecast.

If actual revenue this year is 900 million,
why is next year projected at 2,000 million?

Is it optimism?
Or is there a real reason — like secured backlog, new contracts already won, capacity expansion, regulatory changes, etc.?

Numbers reveal facts.
Management interviews reveal the story behind the facts.

And in valuation —
realistic forecasting depends on understanding both.

This is why we don’t just build models.
We ask questions.

#ORNA #Consult #BusinessValuation #ManagementInterview