Editorial Type:
Article Category: Research Article
 | 
Online Publication Date: 01 Mar 2012

What Problems Does Business Valuation Practice Encounter—Survey

PhD
Page Range: 4 – 22
DOI: 10.5791/0882-2875-31.1.4
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Abstract

The paper presents a part of results of a survey on business valuation carried out in October 2011. The survey involved 182 experts in business valuation from twelve countries worldwide. The article attempts to answer the following questions: Has progress been made in business valuation practice in recent years? Can business valuation experts estimate value better than ever before? Is the process of business valuation becoming more and more complicated and to what extent? What problems do experts face in business valuation? Are there differences in the perception of the phenomena connected with valuation between experts working on the U.S. market, where the business valuation standards are well established, and experts from other countries such as Poland and Romania, where these standards have a shorter history?

Copyright: American Society of Appraisers
Figure 1
Figure 1

Work Experience in Business Valuation

Figure 2
Figure 2

How Long Have You Worked in Business Valuation?

Figure 3
Figure 3

Do You Think That Now Business Valuation Experts Can Estimate Value Better than Ever Before?

Figure 4
Figure 4

Estimating the Business Value Is …

Figure 5
Figure 5

In Order to Value a Company These Days Do You Have to Analyze More Factors than Ever Before?

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Figure 6

Have the Types of Value Drivers Affecting the Value of the Company Changed Over the Last Five to Ten Years?

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Figure 7

Has the Impact of the Company Value Drivers Changed over the Last Five to Ten Years?

Figure 8
Figure 8

Which Problems Does the Business Valuation Practice Encounter? Answer: Prediction of Future Events

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Figure 9

To What Extent Is It Currently Possible to Predict Changes in the Scope and Impact of Value Drivers in Annual Perspective?

Figure 10
Figure 10

To What Extent Is It Currently Possible to Predict Changes in the Scope and Impact of Value Drivers in the Perspective of Several Years?

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Figure 11

Which Problems Does Business Valuation Practice Encounter? Answer: Too Few Businesses to Compare

Figure 12
Figure 12

Which Problems Does Business Valuation Practice Encounter? Answer: Difficulties in Accessing Market Data on Transactions

Figure 13
Figure 13

Which Problems Does Business Valuation Practice Encounter? Answer: Difficulties in Accessing Enterprises' Data

Figure 14
Figure 14

Which Problems Does Business Valuation Practice Encounter? Answer: Reliability of the Parameters and Data Used in Valuation

Figure 15
Figure 15

Which Problems Does Business Valuation Practice Encounter? Answer: Determination of the Cost of Capital

Figure 16
Figure 16

Which Problems Does Business Valuation Practice Encounter? Answer: Theory Does Not Provide Solutions to the Problems of Valuation Practices

Figure 17
Figure 17

Which Problems Does Business Valuation Practice Encounter? Answer: Pressure from Valuation Principals

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Figure 18

Which Problems Does Business Valuation Practice Encounter? Answer: Unrealistic Theoretical Assumptions of the Methods and Tools Used

Figure 19
Figure 19

Which Problems Does Business Valuation Practice Encounter? Answer: Determination of the Size of Nonoperating Assets and Surplus Assets

Figure 20
Figure 20

Which Problems Does Business Valuation Practice Encounter? Answer: Routine Approach to Valuation

Figure 21
Figure 21

Which Problems Does Business Valuation Practice Encounter? Answer: Too Complicated Business Valuation Standards

Figure 22
Figure 22

Which Problems Does Business Valuation Practice Encounter? Answer: There Are a Number of Other Problems

Contributor Notes

Piotr Szymański, PhD, Wroclaw University of Economics. E-mail: Piotr. szymanski.ue@gmail.com.

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