Singapore, 2 November 2017 – New insights critical for the development of business valuation were revealed at the IVAS-IVSC Business Valuation Conference today, an area that the Committee for the Future Economy (CFE) has identified as a high growth area for Singapore. Guest of honour, Senior Minister of State for Law and Finance, Ms Indranee Rajah, delivered the Welcome Address where she highlighted trends in the evolving business environment that will impact business valuation.
2. The findings of the Business Valuation Market Study 2017 themed ‘Valuation Trends in ASEAN’ by EY and the Institute of Valuers and Appraisers, Singapore (IVAS) were also released at the conference. (See Annex 1) This is the first time that this survey has been broadened to include ASEAN since it was launched in 2014.
3. On the future of business valuation, the study showed that technology has been cited as the top industry with strong valuation growth, and that disruptive technology will affect businesses in the future and impact business valuations according to 47% of its respondents.
4. Mr Andre Toh, EY ASEAN Valuation & Business Modelling Leader, said, “The EBITDA multiple came out tops among the many possible multiples that can be used when adopting the Market Approach, a surprising move away from the formerly popular P/E ratio. Nevertheless, the P/E ratio is one of the top three choices for transaction valuations. The Revenue multiple snuck into second place, and we believe this can be explained by technology start-ups becoming commonplace across ASEAN.”
5. The report also showed that the key drivers for demand for valuation over the next three years will come from mergers and acquisitions (88% of respondents) and financial reporting (61.8% of respondents). Mr Lie Kok Keong, Partner and Valuation Leader, PWC, and Chairman of the IVAS Research Committee said, "I understand from the CFE (Committee for Future Economy) report on Legal and Accounting Services that the Government will continue to pursue and attract more funds to Singapore. These funds will evaluate investment opportunities locally and the region. I expect growth in M&A activities will continue to be a key demand driver for business valuation expertise."
6. Mr Vishal Sharma, Partner and Executive Director for Corporate Finance at KPMG and Chairman of the IVAS Curriculum and Assessment Committee said, “To facilitate this growth in demand for business valuation expertise, we need a critical pool of valuation professionals who can competently advise banks on the valuations for credit facilities, advise venture capital and private equity funds on the attractiveness of investments, advise corporations on valuation for transactions, and advise shareholders on fairness and reasonableness of offers.”
7. The Chartered Valuer and Appraiser programme was launched by the Institute of Valuers and Appraisers, Singapore (IVAS) in 2016 to raise the standards of ethics and professionalism in business valuation. Mr Eric Teo, Chairman of IVAS, said, “I am glad to say that since the launch of Chartered Valuer and Appraiser programme as Asia's first and only professional business valuation certification, we are seeing rising interest in the programme.” There are currently more than 120 participants in this 18-month programme, conducted by Nanyang Business School as training partner. They come from various industries, including consulting, accounting, banks and investment firms and with functional jobs including CFOs, analysts, finance directors, lawyers, financial controllers, and strategy development managers, among others. The inaugural intake of candidates will graduate in December 2017.
8. The Chartered Valuer and Appraiser programme is benchmarked against international standards advocated by the International Valuation Standards Council (IVSC), the global standards setter for valuation. It receives wide industry endorsement from industry partners including regulators, professional bodies and global accounting firms. It is also aligned with the recently launched Skills Framework for the Accountancy sector. Its curriculum combines technical knowledge with practical expertise and an Asian perspective shared by industry experts who use case studies from Asia and emerging markets. The programme also covers valuation of some of the upcoming industries such as biotechnology, technology and internet companies.
9. The two-day conference, co-organised by IVAS and IVSC, featured 48 speakers and panelists, and was attended by over 300 participants from Singapore and around the world including Australia, China, Hong Kong, India, Indonesia, Japan, Malaysia, New Zealand, Philippines, Saudi Arabia, Sri Lanka, Thailand, Uganda, United Kingdom and Vietnam. IVAS was set up by the Singapore Accountancy Commission (SAC) in 2013 to develop Singapore into a centre of excellence for business valuation. IVAS is a member of IVSC.
10. Mr Evan Law, Chief Executive, Singapore Accountancy Commission (SAC) said, “Valuation techniques need to evolve to meet the new and growing demands of the fast changing business landscape. The Chartered Valuers and Appraisers programme is one of the Singapore Accountancy Commission’s initiatives to develop a workfoce that is equipped with the necessary skills to be ready to meet the future demands of their jobs. Keeping the workforce relevant and able to add value are critical as we develop Singapore into a leading global accountancy hub.”
About Institute of Valuers and Appraisers, Singapore (IVAS)
Established under the umbrella of the Singapore Accountancy Commission, the Institute of Valuers and Appraisers, Singapore (IVAS) seeks to foster professional excellence in the areas of Business Valuation and develop and grow Singapore into a Centre of Excellence for Business Valuation through:
Through these initiatives, IVAS will seek to broaden the talent pool, deepen the expertise of Business Valuation professionals, uphold the public trust in the role they perform and enhance the reputation of the Business Valuation profession in the region. For more information, please visit www.sac.gov.sg
About International Valuation Standards Council (IVSC)
The International Valuation Standards Council (IVSC) is an independent, not-for-profit organisation that produces and implements universally accepted standards for the valuation of assets across the world in the public interest. The IVSC consists of representatives from a wide range of sectors, including professional valuation institutes, valuation providers, standard setters, regulators of valuation services and academia. The organisation’s mission is to establish and maintain effective, high-quality international valuation and professional standards, and to contribute to the development of the global valuation profession, thereby serving the global public interest. For more information, please visit https://www.ivsc.org/
About Singapore Accountancy Commission
The Singapore Accountancy Commission (SAC) spearheads the development of the Singapore accountancy sector with the vision of developing Singapore into a leading global accountancy hub. SAC is working to achieve this by deepening the skills of the accountancy talent pool; developing the industry to capture growth opportunities; and creating a hub and exchange by building Singapore into a centre for thought leadership. SAC is a statutory body under the Ministry of Finance. For more information, please visit www.sac.gov.sg
For more information, please contact:
Head, Corporate Communications
Singapore Accountancy Commission
DID: 6325 0521
For queries about the Business Valuation Market Study 2017, please contact:
Senior Manager, Brand, Marketing and Communications
Ernst & Young Solutions LLP
DID: +65 6309 8379
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