{"id":645,"date":"2025-11-06T11:30:00","date_gmt":"2025-11-06T11:30:00","guid":{"rendered":"https:\/\/athlavaluations.com\/blog\/?p=645"},"modified":"2025-11-06T09:54:55","modified_gmt":"2025-11-06T09:54:55","slug":"how-statements-of-fiscal-intent-impact-on-short-term-valuations","status":"publish","type":"post","link":"https:\/\/www.athla.co.uk\/insights\/how-statements-of-fiscal-intent-impact-on-short-term-valuations\/","title":{"rendered":"How statements of fiscal intent impact on short-term valuations"},"content":{"rendered":"

It is now less than three weeks until the Budget. <\/p>\n

And following Rachel Reeves\u2019 statement on Tuesday, UK markets turned red \u2013 by less than 1% but that\u2019s still not great.<\/p>\n

Anecdotally I hear that private company corporate activity is very muted as everyone waits for the real detail on 26\u00a0November.\u00a0 Of course, we all still have a lot of work on our desks to finish off, but I suspect that, like us, most new projects now will have a deadline of the end of the year, rather than the end of the month, at the earliest.<\/p>\n

Meanwhile, the John Lewis Christmas advert has broken –\u00a0Where Love Lives | John Lewis & Partners | Christmas Ad 2025<\/a>.\u00a0It has a retro 1990\u2019s feel, as well as some heart-warming themes around father son relationships.\u00a0 It\u2019s great, but I am not sure it will lead customers to rush to the shop, thereby increasing John\u2019s Lewis\u2019 valuation.<\/p>\n

Personally I would have chosen a different 1990\u2019s iconic song which, whilst it\u2019s not a winter song, does have a thumping beat which might get me strutting to the shops! The Lovin’ Spoonful – Summer in the City (Audio)<\/a>.<\/p>\n

That has got me thinking about which tracks a valuations business could use to stimulate lawyers to give us a buzz with a request to quote for some work. \ud83d\ude0a<\/p>\n

One of the team suggested\u00a0God Only Knows (Remastered 1999)<\/a>!<\/p>\n

Do you have any songs that you could send your clients that would encourage them to get in touch with some work?\u00a0 If so, let us know and we will publish a complication for Christmas.<\/p>\n

Meanwhile back to more serious matters.<\/p>\n

Where listed markets lead, private markets will follow.\u00a0There is an inevitable correlation between them because we tend to use a comparison with quoted company multiples as a one of the methodologies for valuing private companies.\u00a0 Whilst debates rage about private company illiquidity premia and discounts, the truth is that as markets fall or rise, this immediately impacts on the base line assumptions used in the calculations.<\/p>\n

So statements by HM Chancellor of the Exchequer matter as much in our world as in that of our close cousins, the analysts behind the buy and sell recommendations in the listed markets.\u00a0 And of course all of us care about fiscal policy because of what it will do to our clients\u2019 profitability, which also inevitably has a degree of impact on the value of a share in that company.<\/p>\n

Private company valuations can peak and trough in a very short space of time and big announcements by important people can cause both temporary and longer term issues in this regard.<\/p>\n

This is why you have to value on a specific day and only then, if required, form a view on whether the value can hold for a longer period.\u00a0 As news cycles get shorter and there are many more immediate sources of data, the issue is only going to get more pronounced.\u00a0 We are already seeing discussions about the need to move from quarterly to monthly PE and VC fund valuations.\u00a0 Will we get to weekly?\u00a0 Or daily?\u00a0 Will hourly become possible and if so do we need hourly?\u00a0 (Just in case you did not know Athla already has the ability, using our software, to produce valuations hourly).<\/p>\n

Whilst we all wait for 26\u00a0November these are themes that are worth considering so we can all be more prepared for a world where instantaneous answers will become the norm where previously it was thought unnecessary or impossible.<\/p>\n

In the meantime, do call us if you are interested in the topic of how macro events or big announcements by politicians could create valuation opportunities or challenges. Or maybe you have a client in whose interest it is to establish a valuation at a time when quoted comparables are muted.<\/p>\n","protected":false},"excerpt":{"rendered":"

It is now less than three weeks until the Budget.<\/p>\n","protected":false},"author":2,"featured_media":647,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-645","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.athla.co.uk\/insights\/wp-json\/wp\/v2\/posts\/645","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.athla.co.uk\/insights\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.athla.co.uk\/insights\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.athla.co.uk\/insights\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.athla.co.uk\/insights\/wp-json\/wp\/v2\/comments?post=645"}],"version-history":[{"count":3,"href":"https:\/\/www.athla.co.uk\/insights\/wp-json\/wp\/v2\/posts\/645\/revisions"}],"predecessor-version":[{"id":649,"href":"https:\/\/www.athla.co.uk\/insights\/wp-json\/wp\/v2\/posts\/645\/revisions\/649"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.athla.co.uk\/insights\/wp-json\/wp\/v2\/media\/647"}],"wp:attachment":[{"href":"https:\/\/www.athla.co.uk\/insights\/wp-json\/wp\/v2\/media?parent=645"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.athla.co.uk\/insights\/wp-json\/wp\/v2\/categories?post=645"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.athla.co.uk\/insights\/wp-json\/wp\/v2\/tags?post=645"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}