Deloitte is a sponsor of the IVSC and supports efforts to enhance the global valuation profession through the use of consistent and transparent international standards. As a global firm, Deloitte integrates the International Valuation Standards (IVS) within their proprietary approach to valuation, supporting clients around the world.
The IVSC spoke to leaders in Deloitte’s Global Valuation and Modeling business to find out more about their international approach to valuation.
Mark Pighini is Leader for Deloitte’s Valuation and Modeling business. Mark has spent over 20 years of his career delivering professional services related to organisational deployment of capital through capex investments and mergers and acquisitions (M&A).
Stamos Nicholas is the Global Regulatory and Compliance Leader for Deloitte’s Global Valuation & Modeling business. He has more than 35 years of experience providing financial valuation services for the purposes of accounting, tax planning, financing, bankruptcy, litigation, M&A, and investment.
Why does Deloitte have a global approach to valuation?
Deloitte serves some of the largest, most complex companies in the world. Many of our clients operate globally and therefore expect a consistent level of quality, transparency, and consistency within and across countries.
As a firm, external factors such as increasing global trade, investments and capital market formation, and increasing regulatory scrutiny and requirements, began moving us towards a global approach to valuation. These in conjunction with our own internal factors such as limited authoritative global valuation standards, training and mobility needs, technological innovation and processes, and cross border information sharing all increased the importance of having greater consistency across the globe.
Valuations prepared in accordance with guidelines that are well recognized and can be utilized within and across geographies are increasingly critical for organizations, regulators, and local/global markets by helping to foster confidence and de-risk business and investment decisions.
Why does Deloitte adopt IVS as part of its global approach to valuation?
Our proprietary global valuation standards provide guidance for our valuation practitioners and are consistent with local authoritative valuation guidance, as well the International Valuation Standards issued by the IVSC. It was important for us to establish guidelines that are in compliance with the IVS, as the IVSC is the most globally recognized source for valuations standards.
How does Deloitte differentiate itself from other valuation providers?
As the largest global professional services firm, we’re able to make strategic investments to benefit our global valuation practice such as the global standards, innovation and technology tools and services, a digital knowledge sharing platform, and talent development in collaboration with industry specialists. Our practice scale and investments, along with Deloitte’s global platform in accounting, auditing, financial advisory, legal, tax, and consulting services place us in a unique position which differentiates us from other valuation providers.
Business valuation is an important aspect of the valuation work Deloitte undertakes, but it’s also largely unregulated throughout the world. Why is it important to have strong levels of professionalism, training and robust international standards in this field of valuation in particular?
The very fact that valuation is largely unregulated around the world today makes it more and not less important to have strong professionalism and consistent, internationally recognized and applied guidance. Companies, investors, regulators, auditors and the global financial community as a whole rely on business valuation professionals now more than ever, so it’s imperative that we operate similar to CPAs, doctors, lawyers, and other qualified professionals for the benefit of clients and in the public interest.
Robust and consistent practice serves as a framework for, and an enabler of, professionalism.
Through its sponsorship of the IVSC, Deloitte is at the forefront of developing and embedding international standards. Why is it important for a firm like Deloitte to be actively leading efforts to improve standards and professionalism in valuation, as opposed to simply adopting best practice?
Building on the IVSC’s ongoing efforts, it is imperative that responsible professional services firms like Deloitte develop and propagate global valuation best practices.
Given Deloitte’s long professional history (we’ll be celebrating 175 years in 2020), global platform and client base, and extensive experience working with regulators, professional valuation organizations, and the financial community, we have a great deal of experience to share with standard-setters, such as the IVSC, to improve standards and levels of professionalism throughout the world. Deloitte is strongly committed to its corporate and social responsibilities and is closely working with organizations like the IVSC to better serve clients, our professionals, and the public at large, worldwide.
You can find further information on Deloitte’s Valuation and Modeling business at: https://www2.deloitte.com/us/en/pages/advisory/topics/business-valuation.html