FTI Consulting: Valuations Survey 2020

The COVID-19 pandemic has disrupted businesses, caused market volatility and triggered asset devaluations across the globe.

Our team of valuation and deal advisory professionals sought the views of local participants from various sectors to assess their views on how lockdown restrictions had impacted their businesses and value drivers.

We also looked to determine whether valuation metrics and models had been adjusted to incorporate the effects of this unprecedented crisis.

In addition, were participants considering using impairments to account for the impact of the pandemic in current and future financial reporting?

Amongst other questions, the survey investigated whether various stimulus packages put in place by the South African government had been utilised by local businesses to alleviate the impact of COVID-19 and how these were accounted for.

The results of the survey reflect the views of 22 participants, and while these should not be generalised to entire sectors, they provide fascinating insights into the challenges currently faced by businesses.