Public companies curious about the next frontier in valuation scrutiny can study how the Securities and Exchange Commission has challenged valuations in the investment advisory area, according to a valuation firm monitoring enforcement activity.
The methods the SEC is using to challenge and enforce valuations among investment advisers “have direct applicability for public companies,” warns NERA Economic Consulting in a recent alert to clients. “Reporting entities are well advised to make full disclosures of and be prepared to defend unorthodox treatments.”
