Innovation Trends in Business Valuation: the case of Portuguese official auditors

The process of business valuation includes methodologies where innovation is a key factor especially when companies have strategies of mergers and acquisitions, spin-offs and divestitures, corporate restructuring and changes in ownership. According to Portuguese Business Companies Code, in line with EU directives, the official auditors must be active part in the process of companies valuation. However the regulation in force does not specify the methodology to be followed and thus it is not completely known which models the Portuguese auditors are actually using when valuing companies. Based on an inquiry submitted to a panel of auditors, this paper aims at analysing possible innovation in adjustments in assets value, estimation of cash flows, discount rate and residual value.