Quarterly Brief

16th Edition of our International Valuation Newsletter, Q3 2021

The COVID-19 pandemic has placed an unprecedented burden on our global economy. Unlike other crises we have faced in the past decades, COVID-19 has caused fundamental disruptions in global supply chains and will have a lasting impact on consumer behavior. As we approach 2022, we may now begin to assess the impact these remarkable pressures have placed on businesses and their expectations for the future.

In this edition of the Quarterly Brief, we examine 2020/2021 and observe what has happened through the lens of goodwill impairment in Europe. We will attempt to compare recent developments with those of the past 15+ years, including prior major economic crises, to identify similarities at the sector level.

In this newsletter, we explore:

  • What is the broader impact of COVID-19 on goodwill impairment? 
  • How do the levels of goodwill impairment compare to the 2008 global financial crisis and the 2012 European debt crisis? 
  • What has been observed at the sector level?

In addition, we share with you our summary of key capital market data such as index performance, sector multiples, risk-free rates, country risk premiums and growth rates for selected markets. This can all be found in the final sections of this Quarterly Brief.

We look forward to discussing your questions regarding COVID-19’s impact on goodwill impairment trends as we look ahead to 2022. As always, stay safe and healthy.

Previous issues

Early-stage companies
15th Edition, 2021

Building an ESG lens into business valuations
14th Edition, Q1 2021

International Valuation Newsletter
13th Edition, Q4 2020