Are Opagio valuations accepted by auditors?
Short Answer
Auditors evaluate valuations on methodology quality, not source. Opagio valuations support auditor discussions when they meet technical standards, but acceptance depends on the specific asset and context.
Full Explanation
Auditors (both external for statutory financial statements and internal for goodwill impairment testing) require valuations to follow ASC 820 Fair Value Measurement or IFRS 13 standards. Opagio uses compliant methodologies (RFR, MPEEM, Cost, Greenfield, Market, With-and-Without), so the framework is acceptable. However, auditors will scrutinise the reasonableness of key assumptions: discount rates, growth rates, useful lives, royalty rates, and CACs. They may request supporting evidence for comparable transactions, market data, and management's views. Opagio valuations work best as a starting discussion point rather than a finalised auditor submission. For material assets requiring audit sign-off, engaging a professional valuation firm is standard practice. The valuation profession maintains a code of conduct requiring independence and competence that goes beyond what an automated tool can represent.
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