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IPEV Guidelines December 2022

Key notes for the private equity valuers

The private equity sector is continuously evolving, adjusting to the changing macroeconomic environment, geopolitical factors, and investors’ expectations. As the markets reset, equity valuation practices improve to better measure and communicate fair value to investors.

The International Private Equity Valuations (IPEV) Board finalized its tri-annual review and published on 14 December 2022 the updated IPEV guidelines, which will replace the 2018 Valuation Guidelines. The revised Guidelines are effective for periods beginning from 1 January 2023, with early adoption encouraged.

What changed?

The 2022 Guidelines edition brings important clarifications on topics such as market dislocation, known and knowable information, as well as pins on the wider consideration for ESG as a core to investment and M&A strategy alerting private equity valuers on the impact that these changes would potentially have on valuations.

The revised Guidelines also expand to introduce the best governance practices to the valuation process.

For more information, please check out our report which outlines some of the key changes within the Guidelines that might require valuers to assess their processes to ensure they are in line with leading practices.

For more information or to discuss further insights on the valuation of private equity and venture capital please contact the key contacts below.

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