ArahMAC

Introduction: What are IPOs? An initial public offering (IPO) refers to the process of offering shares of a private corporation to the public in a new stock issuance. Public share issuance allows a private company to raise capital from public investors. What are private corporations? Private companies range from single-employee, unincorporated businesses to formerly public companies that have been taken private in management buyouts or other transactions.   The diverse characteristics of private companies have encouraged the development of diverse valuation practices. To gain an insight to valuation of private companies and IPOs, the difference between a private and public company should be understood. The major difference include: Stages in life cycle; Size; Overlap of shareholders and management; Quality and depth of management; Quality of financial information; Pressure from short-term investors; and Tax concerns From the list we can infer that pr...

Introduction The decline in the level of business activities, stock market prices, bond prices and overall asset prices implies that the impact of COVID-19 definitely has some impact on valuations conducted by valuation practitioners all over the world. In this article, we would explore some of the various areas where the pandemic would impact value and our best estimate of what the impact may be like. However, we do not possess a crystal ball of what the future holds and this should not be seen as a definitive pronouncement but rather a contribution to the industry’s conversation around this topic. Investment property valued by a valuer comprise the use of transaction volumes that are seldom available due to its indivisible nature and high price. Typically, valuers use historical valuations and comparable properties with values derived in previous periods that had different economic backdrops. As a result, property prices do not always react to the changes in expectations...