International Private Equity Valuations Guidelines for valuations undertaken in current market conditions

Business People Analyzing Statistics Business Documents,  Financial Concept

While many of the world’s economies struggle under the impact of Covid-19, the International Private Equity Valuations (IPEV) Board has issued guidance for advisors, investors and companies to ensure valuations sought at this time remain fair and accurate.

The guidelines, which the IPEV advise should be ‘consistently applied across all investment types, industries and stages of investment (early stage, mid stage and late state)’, are designed to provide more transparency and information for companies and investors as they navigate the current market volatility.

Underpinning the guidelines is the message that ‘strong valuation processes should continue to be followed’ and, that even in difficult market conditions, ‘fair value does not equal a “fire sale” price’.

Instead, IPVC state that ‘fair value represents the amount that would be received in an orderly transaction using market participant assumptions in the current market environment.’

This advice highlights the need for valuations to be undertaken in the context of current market conditions but also to ensure that the underlying value of a company’s assets are acknowledged and accounted for. EverEdge is aware of, and complies with, these guidelines within its valuations practice.

The full guidelines are available here.


Recommended Reads

The most powerful subsidies in the world are intangible

It might sound strange, but government subsidies can be a powerful intangible asset – if…

What the iPhone 15 teaches about opportunity costs

The way consumers fawn over any new iPhone release is exactly how companies treat their…

Preventing disloyal MICE in the company floorboards

Niccolò Machiavelli once said the problem with paying someone $150,000 to do a job is…

What’s the value of content in a post-scarcity world?

It seems to have dropped off the radar, but did you know the Hollywood writers’…

How brand can turn the tables on copyright theft 

Over the six years between 1995 and 2001, Stéphane Breitwieser stole more than $2 billion…

Free 1hr Consultation

Intangible assets are a company’s greatest source of hidden value and hidden risk. Make the valuable visible in your organisation.

Sign-up for a free 1-hour consultation today.

Subscribe to Newsletter