On 23rd May 2024, BVIUK hosted its 3rd Virtual Expert Summit via Zoom, drawing an impressive array of professionals and academics from around the globe. This insightful two-hour session provided a platform to discuss and dissect key topics in the field of business valuation, aligning diverse regional practices with international standards.
The fantastic panel of speakers included such Experts as David Foster, Graham Antrobus, Mark Zyla, Sandra Mossios, Drew Dorweiler, Ascanio Salvidio, Wojciech Krynski, Ashok Abbott, Carla Nunes, Dermot O'Neill, Hafiz Imtiaz Ahmad, Chris Mercer, Jim Alerding, William Thomsen, Mike Blake, and others.
Here’s a brief look at the highlights from this engaging event.
1. Check-in on Standards and Updates from IVSC
The summit began with a comprehensive update from the International Valuation Standards Council (IVSC). Mark Zyla emphasised the globalisation of the valuation profession and the IVSC’s commitment to uniform standards. The session underscored the council’s strategy of market-driven agenda consultations, ensuring the relevance and timeliness of standards.
Significant points included the rising importance of ESG factors and intangible assets in market valuations.
The discussion also touched upon the varying perspectives on the CFA Institute's role in supporting business valuation. While there is noted cooperation on issues like goodwill impairment, some participants expressed a desire for greater support from the CFA Institute.
2. Challenges and Opportunities in Implementing Country-Specific Valuation Standards
This segment illuminated the varied landscape of valuation practices across different countries:
Poland: Wojciech Krynski highlighted the self-regulated nature of Poland's valuation profession, driven by practitioners and academia, striving for alignment with IVSC standards.
Portugal: Mike Blake and Carla Nunes pointed out that valuation practices are predominantly real estate-focused, with minimal regulatory requirements for business valuation.
Italy: Ascanio Salvidio discussed the reliance on court-nominated experts due to the absence of an update of national standards, which makes the critical role of IVSC standards noteworthy.
Canada: Drew Dorweiler spoke on the well-established valuation profession in Canada, which benefits from reciprocity agreements with IVSC but faces challenges like linguistic barriers.
Middle East: Hafiz Imtiaz outlined the complex legal environment, where civil and Sharia laws intersect, and valuations are often handled by accountants without standardised practices.
3. Bridging the Gap Between Theory and Practice
The conversation then shifted to the integration of academic research into practical valuation applications. The panel stressed the importance of understanding and correctly applying model assumptions, and practitioners were encouraged to critically evaluate academic work. Enhanced data availability for private companies was identified as a crucial factor for advancing academic research, and educational programs like the CFA were recognised for their role in teaching practical application of theoretical studies.
4. Business Valuation Accreditation Programs in the UK: Present and Future Trends
The final agenda item focused on the state of business valuation accreditation in the UK. The introduction of the BVIUK accreditation program, which includes a UK-specific module, was hailed as a major advancement. The session highlighted the disparity in training between large firms, which have structured programs, and smaller firms, which lack formal training. The discussion also covered the positive trend of improved understanding of valuation concepts among UK judges.
Closing Remarks
David Foster and Graham Antrobus concluded the summit with expressions of gratitude for the participants' engagement and the rich discussions. They announced the next BVIUK virtual event focusing on ESG and the forthcoming summit in October.
Looking Ahead
The next meeting is scheduled to delve into ESG updates and future trends, promising another round of valuable insights and discussions.
To watch the video recording of BVIUK's 3rd Virtual Expert Summit, click HERE.
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