Dumping burden

Press release, July 05, 2010

“Expert” published an article “Dumping burden”, which illustrates the situation in the valuation market in Russia.

Authors analyzed the impact of the crisis on the valuation service market. The strong competition and mass dumping were emphasized.

In the terms of the post-crisis valuation service market shrinkage the most of experts recognize, that the endeavor to get valuation services at the minimal price ignoring quality is the main factor that determined selection of appraiser.

This mass tendency led to the situation, when even large state corporations held tenders, often setting up value of works under contracts lower than costs, and objectively promoted widening the dumping spiral and degradation of the quality standards of valuation services.

"Dumping burden”, Expert #26 (711)

Alexander Ivanov, Managing Partner of Grant Thornton valuation practice:

In the terms of unprecedented dumping we had to decline not only participating in a set of large tenders with abnormal terms of service payments, but also rough price competition as a matter of principle.

We concentrate on development of other factors, which determine business potential of professional valuation team. It is pleasant that for the most of our regular clients such characteristics as quality, reliability, reputation and long-term partnership are more important than insignificant cost cutting.

Moreover we understand that in long-term perspective the reputation of responsible and reliable company with wide international capabilities will allow us to realize our business potential efficiently and will supply stable growth.

Alexander Ivanov’s comments are remarkably illustrated by the results of Rating of business potential of appraisers-2009, published with the article described above. Grant Thornton Russian Appraisal (Valuation practice of Grant Thornton in Russia) improved its positions from the 5th (2008) to the 3rd place.