18th Edition of our International Valuation Newsletter, Q3 2022
The last couple of months have been dominated by global and regional events that are having multiple and enormous impacts on our society, markets and economy; on our clients; and on each of us at a personal level. We’re seeing increased demand from clients for our services as they seek to make decisions amid forceful and rapidly changing inﬂuences. The question of value and price remains at the heart of discussions, while the level of uncertainty is even higher than in the years 2020 or 2021.
Over the past years, a systematic shift has occurred in the world’s stance on renewable energy. The need for a global energy transition, coupled with both increased governmental support and key technological advances, is hailing renewable energy as the next frontier and is fueling the embracement of and the optimistic investment in a sustainable future.
In our last two editions, the focus of our Quarterly Brief has included COVID 19 (twice), ESG and renewable energy. All these topics are still highly relevant today, for sure. In addition, we now face the tragic war in Ukraine, other looming geopolitical tension, continuously disrupted global supply chains and inﬂation levels not seen for decades in developed countries. With winter soon upon us in the northern hemisphere, we face skyrocketing energy prices due to an expected shortage of gas and electricity, while underdeveloped countries are threatened by food scarcity. The list of dramatic global effects is long, very long.
One thing we learned over the last two to three years is that all the shockwaves we have experienced have affected industries and sectors differently. There is no one-size-ﬁts-all answer to the question of a market-adequate valuation – because there are no stable markets these days.
We wish you all the best in these unpredictable times and look forward to discussing your questions regarding valuation trends and practices.
The way we dealt with global crises over the last 15 years, the COVID pandemic and the Ukraine war seem to be the main triggers for today’s macroeconomic shifts and microeconomic challenges. In addition, ESG has become a key driver of global systematic change and all sectors are affected.
How ESG is becoming an overriding factor for driving and impacting business strategies and investment decisions.
How ESG is becoming an overriding factor for impacting business strategies and investments