In an attempt to discredit the CSAG position Deloittes remarked
CSAG did not provide any cross checks of its valuation of a Cellestis share. Common cross check methods adopted by market practitioners include reference to the recent share trading of the company concerned and a comparison to earnings multiples observed from trading in the securities of comparable companies and comparable transactions which have occurred within the industry.
It is a requirement of ASIC that experts should
- if possible use more than one valuation methodology and compare the values derived from using different methodologies to minimise the risk that the opinion is unreliable; and
- justify its choice of methodologies and describe the methods used
At this point it is worth clarifying that the function of ASIC is to protect shareholders and investors. Therefore the argument that shareholders should somehow comply with ASIC requirements re "market practioners" is ludicrous.
