Global BV News: Look globally during pandemic, panel advises

BVWireIssue #211-2
April 8, 2020

global business valuation
economic forecast, international business valuation, coronavirus, COVID-19

We’re in more of a global economy today than during previous crises, but the coronavirus crisis will impact pockets around the world differently, points out a panel of global valuation experts in a free webinar the iiBV hosted. After one or two quarters of a plunging economy, certain locations will recover in a “V” shape, such as China. Not so for the U.S. and Europe, which will see more of a “U” shape recovery. And, within the locations, certain industries will bounce back more than others. Yes, this is a crisis unlike any other, but governments are reacting much faster than prior upheavals, with interest rate cuts and massive easing measures. But keep in mind that growth will occur from a lower base. And there’s one key question: Will consumer activity completely bounce back after this is all over? Watch out for the possibility of a fundamental change in consumer behavior long term.

The panel also discussed asset impairments, projections, cost of capital, and more. A recording of the webinar, iiBV’s Impact of COVID19—Global Perspectives, is now available. Moderated by Michael Badham, executive director of the International Institute of Business Valuers (iiBV), the panel consists of Yann Magnan, IVSC European Board chair (UK); Andre Toh, deputy chair of IVAS-Standards & Technical Committee (Singapore); Carla Nunes, Duff & Phelps (USA); and David Pearson, Leadenhall (Australia). The program was done in collaboration with the International Valuation Standards Council (IVSC), Singapore Accountancy Commission (SAC), Duff & Phelps, and Leadenhall.

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