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Benefits from Collaboration: Determining Fair Market Value During Uncertain Times

• June 29, 2020

The onset of COVID-19 and the resulting public health emergency moved the country and, indeed, the entire world, into a period of significant uncertainty. The US Government has taken significant actions as a result of this uncertainty to aid the economy; however, the date and levels of economic recovery are uncertain. With this backdrop, appraisers must still perform their work to determine value. Company management can play an important role in helping appraisers determine value.

The current environment is unprecedented, and the future is uncertain. Generally, uncertainty lowers value due to an increase in perceived risk. However, through communication, management can help appraisers understand entity-specific risks to determine value appropriately.

Coker’s latest article, Benefits from Collaboration: Determining FMV during Uncertain Times, will explore the uncertainty appraisers face when expressing an opinion of value of a business, and how management should take an active role in communicating with the appraiser to determine value appropriately.