Secure Workflows: Protecting Data in Global Outsourced Operations
18 DECEMBER 2025
Business valuation has traditionally been a specialized function within accounting, often associated with specific needs such as mergers, succession planning, estate transfers, or shareholder disputes. In many firms, it was an occasional requirement rather than a core offering.
In recent years, however, this dynamic has started to shift. The growth of complex business models, cross-border transactions, and investor demand for deeper insights have made valuation a more frequent and important part of accounting services. By 2025, this trend has continued, positioning valuation as a capability that complements traditional compliance and reporting work while supporting clients in making informed decisions.
From Transactional to Strategic Use
Historically, valuation was largely transactional – tied to tax filings, compliance, or specific events. Once completed, the report was filed away.
Now, more companies are using valuation as a decision-making tool. For example, private companies may need valuations to support employee equity grants, assess financing rounds, or evaluate acquisition opportunities. Instead of being a one-time service, valuation is becoming part of an ongoing advisory relationship.
This shift does not mean valuation replaces other accounting services, but it highlights its growing role in helping clients think about the future, not just the past.
Intangible Assets and the Valuation Gap
An increasing share of company value today is linked to intangible assets such as intellectual property, technology, brand, customer relationships, and digital presence. According to research by Ocean Tomo, intangible assets account for nearly 90% of the S&P 500’s market value in recent years, compared to less than 20% in the 1970s.
For valuation professionals, this presents both challenges and opportunities. Traditional financial statements may understate these assets, creating a gap between book value and market perception. Specialists must use frameworks and industry knowledge to assess factors such as patent portfolios, recurring revenues, or customer loyalty.
For instance, a biotech company with promising research pipelines may have little physical capital, yet command high valuations due to potential future earnings. Similarly, consumer brands may derive significant value from customer communities and brand strength.
Adapting Valuation Models
Classic approaches such as Discounted Cash Flow (DCF), Comparable Company Analysis, and Precedent Transactions remain foundational. However, businesses with uncertain or volatile cash flows often require scenario-based, probability-weighted, or option-pricing models.
Startups may benefit from multi-scenario analysis to reflect varying paths to profitability.
High-growth firms may require models that capture optionality and disruption potential.
Firms in cyclical industries may need stress-testing and sensitivity analysis.
Rather than replacing traditional methods, these approaches provide a broader toolkit to capture uncertainty and reflect a range of possible outcomes.
Globalization and Outsourcing in Valuation
As cross-border deals and investments expand, valuation increasingly requires compliance with global standards such as the International Valuation Standards (IVS). Accounting firms with multinational clients must address differences in tax regimes, legal structures, and reporting requirements.
At the same time, many firms face capacity constraints. To manage demand peaks and access specialized skills, some are turning to outsourcing partnerships in India. These collaborations provide access to a wide pool of trained valuation professionals who bring both technical expertise and cost efficiency.
Rather than replacing in-house teams, outsourcing has become a practical complement, enabling firms to handle complex, large-scale, or time-sensitive projects more effectively, while allowing internal staff to focus on client-facing and strategic priorities.
Regulatory Focus and Transparency
Valuation work is receiving increased scrutiny from regulators and auditors, especially in contexts such as financial reporting, shareholder disputes, and tax compliance. The emphasis is on transparency, well-documented assumptions, and methodologies that can withstand review.
This has encouraged firms to invest in staff training, internal review processes, and documentation standards. The goal is not just to meet compliance requirements but to build confidence with stakeholders who rely on valuation outcomes.
Financial Modelling as a Valuation Tool
Financial modelling has become a natural complement to valuation. Clients increasingly expect not just a number, but a model that explains assumptions, risks, and future drivers of value.
For example, a retail business considering new store expansions may want to understand how different rollout scenarios impact projected value. By integrating valuation with financial modelling, firms can provide more practical, forward-looking insights.
This has also created opportunities for collaboration between valuation professionals and financial analysts, bridging technical modelling with valuation expertise.
Looking Ahead
By 2025, business valuation has become more visible and more integrated into accounting practice. It has not replaced traditional services like audit and tax, but it has become a valuable complement – one that helps clients navigate complexity, evaluate opportunities, and understand risks.
The firms best positioned for the future are those that:
- Develop frameworks for assessing intangible assets.
- Use flexible valuation models alongside traditional methods.
- Ensure defensibility and transparency in their work.
- Leverage a mix of in-house expertise and outsourced support when appropriate.
Conclusion
Valuation today is less about producing a single figure and more about explaining what drives value and how it may change under different circumstances. For accounting firms, strengthening valuation capabilities is not about adopting a trend, but about meeting a practical client need in an environment where business decisions are increasingly complex.
At Windy Street, we support firms by providing scalable, high-quality valuation expertise. We work alongside in-house teams to help them deliver clearer insights to clients while navigating complex business decisions with confidence.
