The International Institute of Business Valuers (IIBV) hosted a “Lively Debate” panel on October 14 to end a day of working sessions at the Paris annual meeting of the International Valuation Standards Council (IVSC). The debate, “Two Truths and a Lie About Global Business Valuation Standards,” discussed the considerations of new valuation professional organizations (VPOs) about appropriate levels of professional standards including education standards and quality initiatives. BVR CEO David Foster was on hand for the debate and provides BVWire with some of the many issues discussed.
Standardization goal: “In the U.S. and most of Europe, I have to question whether we’re even a profession,” says Adam Smith from PwC (on partial loan to the IVSC Standards Board). “Anyone can put up a sign at any time with no review and call themselves a business valuator. It’s not a surprise that there are calls from outside the profession for standardization.” He points out that this is the reason the IVSC creates global standards. But the standards are flexible because “there’s no way now to have one size fits all,” he says.
Smith also said that “the intensity of the volunteer work is now supported by the direct financial support of large firms, VPOs, and others around the world, so we will make it to the finish line eventually.” Others agreed, particularly Doug McPhee, the global valuation director from KPMG. “The mood has changed hugely in the last 12 months. More people are involved, and more people are doing the hard work to take the business valuation profession to the next level.”
Smith pointed to the fact that he, in fact, is paid for his work on behalf of the profession. “It’s PwC who is footing the bill for my work,” he said. And McPhee referred to The Appraisal Foundation’s great BV Roundtable held recently in Washington, D.C. (see last week’s BVWire). “I travel the globe, and people are working hard at applying standards internationally everywhere I go. It’s exciting and very lively!”
High spirits: To make sure that the conversation was energetic, IIBV director Michael Badham offered a menu of valuation-specific opportunities to imbibe—a number of BV-inspired drinks. We like the concoction called “Discount for Lack of Control” described as a “balance of liquors and Bacardi that reduces the pain of any loss of value due to lack of control." Check out the entire BV drink menu and feel free to add your own suggestions!
For more on the debate and the IVSC meeting, see the BVWire News blog.