Valuators personally on the hook in Russia

BVWireIssue #152-3
May 20, 2015

In Russia, business valuation professionals put up their own personal assets when doing a valuation. “If the valuation is wrong and it damages the client, we’re personally responsible,” reports Ekaterina Sinogeykina. She is CEO of NPJSC Euroexpert, a midsize valuation firm in Moscow. Her firm does business with financial institutions mostly, but also with individuals (valuing collateral for loans), and construction consulting for financial institutions. Their main valuation method is the income approach because of the lack of data relative to the market approach.

Although the personal liability rules in Russia are onerous, Sinogeykina reports that there have been no cases of valuators forfeiting their personal assets—so far.

Please let us know if you have any comments about this article or enhancements you would like to see.