SSVS No. 1, or the Statement on Standards for Valuation Services No. 1, emphasizes the need for a comprehensive approach to business valuation, including the collection of various types of information that can significantly affect the value of a business. Non-financial information encompasses a wide array of factors, such as the company’s market position, competitive landscape, management team, operational capabilities, and any intangible assets or potential liabilities not recorded on the financial statements.
Obtaining this non-financial information is crucial because it allows analysts to form a holistic view of the business's true value. Financial metrics alone cannot capture the complete picture—elements like customer relationships, employee skills, brand reputation, and industry dynamics play critical roles in valuation assessments.
In the context of valuation, while financial ratios, confidential business information, and market trends are important, they represent only parts of the broader analysis that must include the qualitative aspects of a business. Thus, focusing on non-financial information is essential for a complete analysis as required by SSVS No. 1.