How to view the qualification licensing and recognition of certified asset appraisers

Personally, I feel that the cancellation of the professional qualification of registered asset appraisers represents at least the following trends.

As for the valuation business, in the future, the so-called assurance business based on independence, fairness, and impartiality will become less and less, or even disappear, and more of the valuation business will be based on market transaction needs. business. In the future, there will be fewer opportunities to issue asset appraisal reports, and more of them will be based on the entrustment of the entrusting party, fully standing on the entrusting party's standpoint, providing valuation and pricing services to the entrusting party, and the report that is more likely to be issued may be a financial consulting report. Or no report is required.

The reason for the current decrease in assurance business is mainly due to the impact of the government’s streamlining of administration and delegating power, and the number of government approval matters will decrease. Take state-owned assets assessment, one of the current main types of authentication business, as an example. If state-owned property rights may change in the future, state-owned enterprises only need to report transaction plans and pricing basis. The State-owned Assets Supervision and Administration Commission believed that the price was reasonable and released it directly. If it feels it is unreasonable, the State-owned Assets Supervision and Administration Commission will hire a valuation agency and, based on the purpose of maintaining and increasing the value of state-owned assets, require the valuation agency to provide consulting services on whether the transaction price is too low. This is just like the China Securities Regulatory Commission hiring accountants and lawyers to serve on the IPO review committee and hiring accountants to conduct special IPO financial verification.

Since government approval matters involving asset evaluation are a gradually simplified process, the authentication business will not decrease all of a sudden. However, in the foreseeable future, I personally feel that these matters are definitely not mandatory. Professional institutions conduct evaluations:

1. Evaluation of physical assets. Even capital verification is no longer needed, so it is inevitable that the requirement to issue an evaluation report for physical investment will be cancelled.

2. Changes in the property rights of state-owned assets. State-owned asset management institutions may need to hire external professionals for management needs, but the entrusting entity has changed (from an enterprise to the government) and the purpose of the entrustment has changed (from an enterprise's self-certification of innocence to fulfilling government regulatory requirements).

3. Listed companies acquire assets. At present, a valuation report needs to be issued, but in the future, you only need to explain the basis of pricing. Whether the specific pricing is fair or not will be judged by the numerous public shareholders of the listed company. This pricing basis (that is, the relationship between valuation and pricing) can be found by the company itself, or by a financial consultant (currently a securities firm in China). Of course, it is more likely to hire a professional valuation agency. In the future, both the acquirer and the acquiree may hire professional valuation agencies to provide valuation services from their respective perspectives and provide reference for the acquirer and the acquiree to reach an agreement on the transaction price.

Therefore, for the current evaluation institutions, it is inevitable to embark on an arduous road of transformation. The dividend business provided by the previous policies is no longer available. Evaluation institutions need to find a way to better adapt to market needs. path to profitability. As the assurance business is gone, evaluation institutions can only turn to professional consulting business and provide diversified and integrated professional services. For details, you can refer to some financial consulting companies in the United States, such as DUFF&PHELPS, Duff & Phelps China; American Appraisal-Home; etc. Of course, with the development of the economy, there will definitely be a lot of room for growth in professional valuation. The importance of valuation in transactions will be even more important than it is now. This part of the business will be obtained by institutions with strong professional capabilities. At present, most small firms that rely on personal connections (mainly reflected in the local State-owned Assets Supervision and Administration Commission or banks) to obtain some assurance services such as state-owned asset evaluation and credit asset evaluation have no future. In addition, there is a lot of business accumulation in certain sub-sectors, and continuous industry research may be the way to break through for some small-scale evaluations. In the current appraisal business, any appraiser who is new to an industry can produce a report in ten days and a half. Personally, I think it is quite nonsense, and the credibility of the appraisal is really not strong. Of course, the accumulation in a certain industry I am talking about here is by no means what ZL acquired through a large number of acquisitions and mergers of a series of small firms. Because there are many people and many businesses, it is said that when a new valuation is carried out in many industries, You can find previous reports in your own report library, but because the business in the same industry is not done by the same team or the same person, it is still a mountain top system or a gang system, each working independently. In other words, this company may have done a lot of similar business, but it does not mean that they have a deep understanding of this industry, because each evaluation in this industry is not done by the same person.

For appraisers, the impact is inevitable. In the future, appraisers will no longer have the word "registered", but will become a qualification recognized by society, but there will be no employment channels. It will also be more liberalized, and appraisers no longer have to practice in an asset appraisal agency to maintain their qualifications (otherwise they can only apply for non-practicing membership). Businesses that previously required the assistance of professional appraisal agencies now only need to recruit some appraisers. The staff on duty can solve it by themselves. For management needs, government departments such as the State-owned Assets Supervision and Administration Commission may also hire some valuation personnel. Banks, securities firms, and mergers and acquisitions departments of large enterprises no longer need to hire some professional valuation agencies when conducting business (of course, these institutions now have Many people also claim that they understand valuation very well) and may also have part of the valuation process built-in, so there are definitely advantages and disadvantages for individuals.

Of course, although the appraisal industry is now under "multiple" management, many people will think that the Asset Appraisal Association is the most cowardly and cannot withstand the pressure and cancels the registered asset appraisers, but it is foreseeable that real estate valuation Engineers and land appraisers must be quick as well.

alexWU’s answer (14 votes):

I am not an industry boss, so I don’t know how the bosses consider this issue. But as a young asset appraisal practitioner, I think this is good news for our younger generation.

China is a resource-scarce society, and it is also a rights-based resource society. The standard for measuring the quality of various qualification certificates, and even product certifications, deviates from the quality of the thing itself. Looking back to our parents' generation, don't blame them for being "cynical", because in that era, if the leader asked you to do something, you were a talent, if the leader didn't let you do it, you were trash. To this day, we still have many relics like this. You are qualified, and you can still make a report even if you are rubbish. Without qualifications, it is useless to study for a doctorate in the United States.

This is actually ridiculous. To be more specific, we often hear reports on TV or articles, is a certain product safe? The answer: It complies with national standards... It seems that if it meets national standards, there will be no problem with this thing.

The same is true for qualification certificates. If a qualification certificate is issued by the Finance Bureau, does it mean that its business level must be high? If you manage an industry association, does your level have to be bad? What exactly is the thing that measures the value of an appraiser? ! If an asset appraiser finds it very difficult to survive due to the loss of the protection of the word "registration"... Fellow compatriots, don't be sad and entangled, let's happily change careers. In a bullshit industry, you won't be able to stay for a lifetime.

But on the other hand, if these so-called "official backgrounds" are lost and the asset appraisal industry is still alive and well, then this will be a great thing.

Not to mention commentaries, tax comments have also been harmonized~ It can be seen that industry self-management is a trend. Isn’t the tall and powerful American emperor also managed by industry associations? Of course, our industry management is not necessarily a good thing. After all, there are many bad industries and few good ones. But at least at least, commentaries are now exposed to the torrent of the market. This is progress.

This also reminds me of the small annual review. Since the Industry and Commerce canceled the requirement for an audit report for the annual review, a large number of "certified accountants" have been relegated to the prototype of agency bookkeeping. Saying this may hurt the self-esteem of many people, but we have to admit that administratively mandatory audit services have zero demand for quality. Why should a product with zero quality requirements continue to maintain its market position? Eliminate them, die early and be born early. This is also humane for practitioners, because engaging in such a profession will seriously damage human dignity, because there is no demand for quality, only demand for purpose, and you can do whatever you want. It's worse than rape. When you resist, you are called a bitch and you are pretending to be pure~