Valtech’s valuation team has recently completed a valuation in relation to the fair value of several investments in TV dramas, movies and concerts.

These kinds of investments are not uncommon in the market, yet it could be challenging to value due to the unique nature of these assets. Unlike common business valuations, these investments can have more variants in terms of cash flow. Valuers need to be flexible and determine the most suitable valuation approaches for each of the investments based on the best available information provided by the client.

Scenario analysis is also crucial for these investments, due to the significant uncertainties in the entertainment industry. To ensure the significant assumptions in the scenario analysis are well supported, valuers must maintain efficient communications with the clients and auditor throughout the valuation. We have exercised due care in handling these investments, by providing sound working processes with both quantitative and qualitative factors. We are glad that the valuation went smoothly and successfully assisted our client to complete the financial reporting on time.