Valuation in Time of Crisis - Mazars' Report

The exceptional nature of a crisis leads to questions arising over the methods traditionally used during valuation exercises: the simple application of pre-crisis approaches can indeed prove to be very dangerous, in some cases by overestimating the effects of the crisis, or, on the contrary, by underestimating the loss of value.
This document recalls, firstly, the principles that should be observed when facing a crisis and the elements to be challenged within commonly-used valuation approaches. The study later examines the various tricks and traps that might lead to a mis-assessment.