Company valuation in today’s world crisis
The current crisis related to CoVid-19 will impact company valuations, for all investors and notably for private equity funds in the context of the publication of their Net Asset Value. The possibility of nationalizations raised by the French government would lead to specific valuation issues, as shareholders, in such case, would be entitled to a fair indemnity, set by an independent expert. This crisis will force valuation experts to review their implementation of valuation methodologies and to analyze the potential impact of the crisis at an industry / company level. This should be done in a context where some experts consider that stock prices do not reflect the Fair Values of assets and companies, due to behavioral bias…