Sterling Valuation Group CEO Murray Grenville was quoted in today’s Wall Street Journal article Fidelity Halves Its Ant Group Valuation After Beijing’s Clampdown
Fidelity Halves Its Ant Group Valuation After Beijing’s Clampdown
By Serena Ng and Jin Yang
Updated May 3, 2021 6:15 am ET
When valuing the shares of a private company, the committee considers factors that can include the market performance of publicly listed rivals, the firm’s expected future cash flows, other financial metrics and the most recent information available about the company.
“There’s a tremendous amount of judgment that goes into the valuations” of unlisted companies’ shares, said Murray Grenville, CEO of Sterling Valuation Group, a New York-based company that helps investment funds value illiquid assets. His firm hasn’t assigned a value to Ant.
Normally, when funds invest in a startup or private company, they envisage a holding period for the shares before an exit by way of an IPO or sale, Mr. Grenville said.
“If the goal posts have moved…it needs to be considered in the valuation,” he said.