Major challenges of valuing a business

Sample Solution

Major challenges of valuing a business The process of valuing a business combines both art and science and can be arduous. Generally speaking, a detailed, comprehensive analysis and the ability to develop accurate projections and assumptions are necessities. Business valuation also require the application of finance theory in the appropriate places and using professional judgment. With that said, some of the application of the most common challenges facing business valuation professionals include: developing reasonable assumptions for projections based on historical trends and expected future occurrences and documenting the reasoning behind those assumption choices; requesting, tracking and reviewing the necessary documents; spreading the tax returns and financial statements; and building a comprehensive valuation report.

rities. The Government has, however, proposed that key environmental principles will be introduced in both the legal context, via primary legislation, and through policy context, whereby environmental principles are supported by ‘policy statements’ which the Government must have reference to. This seems to replicate the approach taken in Fisherman and Friends of the Sea case. Here, rare judicial consideration was given to the polluter-pays principle, which founded a successful argument brought by an environmental non-governmental organisation. Although this case cannot act as precedent beyond the jurisdiction of Trinidad and Tobago where it was contested, it does potentially offer some guidance to a post-Brexit Britain in which environmental principles may gain greater legal prominence. However, in reality, these principles mandate very few concrete outcomes. Instead, their significance lies in the fact that they often give rise to procedural requirements, such as risk assessments and participatory procedures. Therefore, whilst in theory the promotion of key environmental principles into a legal context is somewhat promising, this development on its own will not bandage up the wound left open by Brexit.

Devolution

The involvement of newly devolved administrations in the process of transposing, repealing and amending EU legislation into domestic law post-Brexit is yet another challenge. Whilst at first it is likely that the vast quantity of EU law will be retained, over time differentiation between devolved administrations may occur; especially where administrations adopt more ambitious agendas or perhaps support a more market-driven approach. Even prior to Brexit nations have shown divergent views on environmental matters. While England is dominated by a strong deregulatory tone, particular focus has been placed on renewable energy in Scotland and Northern Ireland, whilst Wales has strongly prioritised the principle of sustainable development. With the potential loss of the powerful regulatory tone of the EU, devolved administrations may be able to exploit their new-found freedo