In a YouTube video, Ray Moran (MG Valuations) talks about valuation and cultural issues often encountered when working with China-related transactions. Moran lived in China and has worked with Chinese firms for 15 years and says there is “so much activity” these days. Outbound Chinese M&A will hit record levels this year, he says, with large investments in agribusiness, dining/lodging, and technology. In terms of valuation methodology, cost approaches tend to be more prevalent in China than income-based approaches. China is very different culturally than anywhere else in the world, so it’s important to “form a proper business relationship” with Chinese clients.
Extra: The International Institute of Business Valuers (iiBV) recommends establishing a global designation for business valuers to be known as the “IBV” (International Business Valuer) that would be appended to the qualified VPO’s designation and administered by the VPO. Moran is also the chair of the marketing committee for the iiBV.
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