In the public mind, TEGOVA is real estate. It’s 72 associations from 38 countries – 70 000 valuers in Europe, are all majority real estate valuers. For the EU authorities, the real estate aspect is also determinant in the Mortgage Credit Directive’s recommendation of European Valuation Standards to the member states of the Union, as in the European Central Bank’s accordance of precedence to EVS over all other standards in its Asset Quality Review manual for the valuation of banks’ real
Yet business valuation is also prevalent among a number of members with valuation firms or individual valuers often combining real estate and business practice. This is a welcome tendency for the profession and for European society at large because land and buildings are such an important and integral part of most businesses that the combination of real estate and business knowledge provides a solid grounding for business valuation excellence.
Conversely, business valuation is an attractive field of activity for real estate valuers in a mutating economic and professional environment where no source of activity is permanently guaranteed and new opportunities arise.
Responding to increasing member demand, European Business Valuation Standards now provide fundamentals of best practice in business valuation, with a quality that can be relied upon by valuers, public authorities, investors and the financial industry throughout the Union and beyond.
Like EVS, European Business Valuation Standards are anchored in the EU legal order, putting all valuation definitions and concepts in step with EU law and providing a separate section on EU Legislation and Business Valuation. The EU has always been part of TEGOVA’s DNA, underpinning our mission to provide Europeans with a common set of standards fit for their single market and emerging polity. Our standards are founded on the understanding that Europe has reached a tipping point: the EU is now the dominant sculptor of our regulatory environment and valuers can no longer limit their horizons to the national policy and regulatory framework. This is at least as important for business valuation as for real estate given the number of key business areas regulated by EU law.
Business valuers must master a fast-Europeanising business-regulatory environment and I trust that these, the first ever truly European Business Valuation Standards, prepared by highly skilled professionals in business valuation, will provide the grounding for that.
Krzysztof Grzesik REV FRICS
Chairman of the Board of TEGOVA