Authored By: Will O’Donnell
In early May, Evergreen Advisors attended the American Society of Appraisers’ (ASA) 2025 Spring Fair Value Conference—an event that brings together top valuation professionals, thought leaders, and regulators to discuss the latest developments and challenges in fair value reporting.
For Evergreen’s Business Valuation team, this annual conference offers an opportunity to stay current on evolving industry standards, regulatory expectations, and valuation methodologies. With a focus on best practices across financial reporting, private equity, and complex securities, the event is particularly relevant for our professionals who regularly deliver valuations that support GAAP-based financial statements, including purchase price allocations, goodwill impairment testing, investment portfolio valuations, and equity compensation.
5 Key Takeaways from the Conference: Insights from Senior Valuation Leaders at the Big Four
The conference kicked off with a panel featuring senior valuation leaders from Deloitte, EY, KPMG, and PwC. They shared high-level perspectives on the evolving valuation profession—from workforce dynamics to complex technical challenges. Here are five key themes that emerged:
#1: Hybrid Work and Collaboration Challenges
Many firms now operate under hybrid models, with employees spending about 60% of their time in the office. While remote flexibility is valued, in-person interactions—especially client kick-offs—remain critical. The distributed nature of client leadership teams has made coordination more difficult, reinforcing the importance of intentional collaboration strategies.
Training and knowledge-sharing are top priorities, especially as valuation models grow more complex and AI tools reshape the analyst workflow.
#2: Evolving Expectations Around Company-Specific Risk Premiums (CSRP)
The company-specific risk premium (CSRP)—historically viewed as a subjective “fudge factor”—is under increased scrutiny. Regulators and auditors now expect stronger quantitative support.
Analysts are leaning on market participant assumptions and implied CSRP calculations, but these must be carefully reconciled with insights from management, private equity, or venture capital investors. Calibration techniques, similar to those used in purchase price allocations (ASC 805), are becoming more common in justifying CSRP inputs.
PE/VC data is also gaining traction as a benchmark for risk premiums, especially for startup and high-growth companies where traditional WACC models fall short.
#3: Tariffs, Taxes, and Forecasting Uncertainty
Ongoing changes to tariffs and tax policies are adding layers of uncertainty to long-term forecasts. While market multiples may absorb some of this risk, the key concern is whether client forecasts reflect these shifts in a meaningful way.
Auditors are encouraging companies to proactively model multiple scenarios rather than take a wait-and-see approach. FP&A teams should account for both direct and indirect impacts when building out financial forecasts, ensuring they’re well-positioned to defend valuation assumptions. We explored similar dynamics in our article on early-stage valuation trends.
#4: AI’s Growing Role in Valuation
The Big Four continue to invest heavily in AI. EY, for example, has developed EYQ—its proprietary research tool modeled after ChatGPT—to streamline analysis and enhance client service. However, data privacy remains a challenge; client information cannot be input into commercial AI models due to confidentiality concerns.
AI is transforming time-consuming tasks like financial trending and comparable company analysis. Still, the consensus is clear: human judgment remains essential. AI tools can enhance, but not replace, the experience and insight required for sound valuation conclusions.
While there’s some concern that analysts may lose hands-on learning opportunities, past technology shifts (such as the move from manual 10-K reviews to data platforms) suggest professionals will adapt and thrive.
#5: Secondary Market Transactions and New AICPA Draft Guidance
New draft guidance from the AICPA places greater emphasis on the use of secondary market transactions in valuing privately held equity securities. These transactions are becoming more frequent and offer valuable observable inputs that help bridge the gap between theoretical models and actual market behavior.
Valuation professionals are encouraged to calibrate their analyses to recent secondary prices, adjusting for company-specific changes to ensure alignment with ASC 820 fair value principles—especially for stock-based compensation valuations.
Additional Topics of Interest
- VFR Valuation Advisory #6 – Members of The Appraisal Foundation’s Intangible Asset Discount Rate Working Group shared updates and perspectives from the soon-to-be-released guidance.
- ASC 820 Portfolio Valuations – Discussions included growing regulatory focus on LP transparency, conflict of interest disclosures, and valuation fees. Clear communication around valuation methodology and assumptions was emphasized, especially in the context of private equity and venture capital portfolios.
- Continuation Funds – These funds are becoming a popular vehicle in private equity, allowing general partners to extend asset ownership while offering liquidity options for existing investors. The valuation implications of these structures were discussed in depth.
Looking Ahead
Attending the ASA Spring Fair Value Conference equips our valuation professionals with insights into emerging trends and best practices that directly inform client engagements. As the valuation landscape continues to evolve—driven by technology, regulation, and global market dynamics—Evergreen Advisors remains committed to providing technically sound, audit-ready valuations grounded in the latest thinking.
If you’d like to discuss how any of these developments could impact your business or your upcoming valuation needs, our team is here to help. Reach out today to start the conversation.
