In a world of economic turmoil and market volatility, valuation experts say they are spending a lot more time on business valuations. What’s more, they have had to retool their Excel models.

Here’s why: Valuers report that they are finding that costs are not moving with revenue as they did in the past. Inflation is having an uneven impact, so it is now necessary to dig down into the expense line items. As a result, they are seeing more adjustments to more line items in forecasts. Where before you would see a few adjustments, now there can be 10 or more. Excel models are being changed so that expense lines can be projected separately—instead of simply tying them to a ratio.

This was revealed during the Global Town Hall: State of the Global Markets and Their Effect on Business Valuation on May 16, an event that was a collaboration of various valuation professional organizations (VPOs).

Valuation experts also report other phenomena amid today’s turbulent environment. A recap of the event will be in the July issue of Business Valuation Update.