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Thursday, 02 April 2020

Does COVID-19 provide planning opportunities in view of valuations?

Yes, uncertainty impacts certain parameters in valuations, having a negative impact on the outcome. Values of distressed companies and assets are expected to be lower than their non-distressed counterparts. Next to this technical and potential momentarily effect, part of the intrinsic value of a company or asset may be lost without foreseeable recuperation when we return to (the new) normal. Therefore, in case a juridical act has been considered to be overpriced, now may be the momentum to reconsider.