Ten top tips for private equity valuations
Adobe PDF Format
The last two years have been challenging for valuations due to the lack of transactions, volatility and uncertainty in the market. This has placed valuations high on the agenda of investors and regulators.
The need for a thorough valuation process has emerged over the last few years and is a requirement of the AIMFD which mandates a ‘proper’ and independent’ valuation of the fund's portfolio. The IAASB have also introduced clarity ISAs which show an increased regulatory focus on valuation.
We have therefore summarised the common pitfalls and areas of uncertainty in a practical, user-friendly guide to assist management seeking to arrive at robust valuations for the year-end reporting process. These tips outline ten things that a valuer should take into consideration when preparing financial reporting valuations and range from the commercial to the technical.
