The emergence of COVID-19 has recently caused market prices to drop dramatically and fluctuate significantly. Investment funds and investors are grappling with the challenge of quantifying the impact of this elevated uncertainty and extreme market volatility around the globe on the value of their investments.
The International Valuation Standards Council (IVSC) and the International Private Equity and Venture Capital Valuation Board (IPEV) both recently released guidance on valuing investments during periods of significant market uncertainty:
— IVSC’s Technical Boards’ letter
— Special Valuation Guidance by IPEV
In this short article, our Valuations team looks at what this special guidance means when it comes investment valuation.