UK business valuers who are already members of (or well familiar with) RICS, might get a sense of deja vu from the news that The European Group of Valuation Associations (TEGoVA) held the first meeting of the business valuation standards committee in Dubrovnik last week.
TEGoVa chairman Krzysztof Grzesik, FRICS
REV, notes that ‘[f]ifteen of our EU-member valuation associations already offer business valuation specialisations.’ So the group has begun the process to ‘understand a gap analysis of the two fields of valuation, enabling real property experts to bring the knowledge and skills gap’ to BV. This task has challenged many other groups—and already the newest European entrant to the BV standards game is struggling with definitions of ‘highest and best use’ and ‘hope value’ and how those concepts can be applied to business ‘market value.’ Grzesik reports that TEGoVA hopes to release their business valuation standards in March 2020, with new EU-specific training for real property experts beginning in 2021. ‘We want to provide extra education so our members can diversify their practices as the market changes,’ he says.
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