Practitioners from three firms providing cross-border business valuation services from Indian offices believe that the Indian BV industry will grow significantly. Ray Moran (MG Valuation LLC) recently talked about this with Bharat Ramnani, director of valuation services for Aranca, Aroop Cherian, founder of Cherian Advisors, and Bharat Kanodia, founder of Veristrat. Moran is also a board member of the International Institute of Business Valuers.
Five-year outlook: They all believe that, especially domestically, the BV market is poised for significant growth, given the acceptance of IFRS and fair value reporting in India, as well as in the global markets. “Given the above mentioned amendments providing significant growth opportunities to the valuation industry, we expect a Compounded Average Growth Rate (CAGR) of about 20-25% over the coming five years,” says Ramnani. “There is immense opportunity for growth in this industry. We see professionals being exposed to a wider variety of opportunities—enhancing their professional and career growth chances,” adds Cherian.
As growth continues, there will be a push for standardization of valuation practices. “The introduction of the concept of Registered Valuer in the Companies Bill, 2011 has provided a framework to enable fair valuation in companies,” says Kanodia. “Thus, there will be a need for professional valuers to standardize the use of valuation practices in India, leading to transparency and better governance.”
You can read the full interview in an upcoming issue of Business Valuation Update.
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