Global economic fluctuations, evolving market dynamics, technological innovations, and regulatory changes have collectively reshaped the valuation services industry. Businesses and investors seek highly skilled valuation professionals to accurately assess the true value of their assets, businesses, and financial instruments, enabling them to make wellinformed decisions.
Valuation professionals increasingly integrate advanced technologies like artificial intelligence (AI), blockchain, and data analytics into the valuation processes. These tools analyze market trends and financial performance to enhance transparency, accuracy, and accessibility of assessments while providing rapid and valuable insights into financial assets. As the demand for accurate and secure valuation grows, particularly in intellectual property (IP) valuation, their precise assessment becomes crucial for financial reporting, litigation support, and strategic decision-making.
In addition, accurate valuation services play a critical role in merger and acquisition (M&A) activities, helping organizations assess the worth of target companies and making solid investment decisions. In this regard, earnouts and seller financing, crucial in bridging valuation gaps and fostering successful deals, are expected to grow significantly, particularly in private transactions.
In 2024, regulatory frameworks around these areas, including tax assessments and financial reporting, have become more stringent. This has prompted the need to adapt to the changing standards to ensure compliance and provide accurate valuations. Among the most significant changes in standards is the growing emphasis on environmental, social, and governance (ESG) factors. As investors increasingly adopt sustainable and ethical business practices, valuation professionals incorporate ESG criteria in their valuation models, assessing organizations’ market performance, risk, and long-term viability.
The edition, Valuation Services 2024, features the expert perspectives of Michael Dotto, Director of Advisory Services, Voya Financial, and Paul Park, Senior Vice President, Private Equity & Transaction Advisory Group, Newfront. These esteemed individuals share their invaluable insights regarding the developments and challenges within the sector, along with the possible solutions. We hope the insights from industry leaders featured in this edition will assist you in making informed decisions for your businesses.