Client User Manual - Business Valuation

why and when to get your business valued + how to choose a business valuation professional + how we support business valuation clients


Information relevant to business owners and leaders who care about business value.

Why and when to get your business valued

Professional circumstances that might prompt a business valuation
  • Transactions - selling or buying a business interest
  • Funding - exploring equity investment or debt financing
  • Strategic planning - e.g. restructuring, succession planning, partnership admissions or withdrawals, performance management and so on
  • Insurance - this might include ensuring appropriate coverage
  • Legal proceedings - e.g. shareholder disputes, economic damages disputes
  • Regulatory compliance and more

Personal circumstances that might prompt a business valuation
  • Retirement or other personal financial planning
  • Estate planning - this might include the allocation of assets as well as assessing any related tax obligations.
  • Family law - in the event of a divorce, the value of the business may be a component of alimony or child support calculations

Whatever the impetus for your valuation engagement, it is advisable to hire an independent, qualified business valuation professional. Their unbiased perspective can provide a fair and defensible opinion of value, minimizing complications and saving time and money.

How to choose a business valuation professional

Professional qualifications

Begin by looking for professional qualifications or other indicators of appropriate training.

In North America, credentialing bodies include the American Institute of Certified Public Accountants (AICPA), the National Association of Certified Valuators and Analysts (NACVA), the Institute of Business Appraisers (IBA), and the American Society of Appraisers (ASA).

Relevant professional credentials include the ABV (Accredited in Business Valuation), the CBA (Certified Business Appraiser), the ASA (Accredited Senior Appraiser), and the CVA (Certified Valuation Analyst). Senior credentials include the MAFF (Master Analyst in Financial Forensics), and the BVAL (Business Valuator Accredited for Litigation).

Beyond the ‘alphabet soup’

Beyond the alphabet soup, additional attributes to consider include

  • Relevant experience: Familiarity with the subject business's operating and competitive environment, as well as its legal, tax, and regulatory landscape.
  • Strong communication skills: Ability to convey concepts and findings clearly and engage with clients and stakeholders effectively.
  • Independence: Assurance of an unbiased perspective and adherence to professional standards, ensure objectivity in the valuation process.

How we support business valuation clients

Clients first receive an engagement letter detailing our understanding of client needs, our approach, fees, and more.

Data collection and due diligence

Upon receiving the signed engagement letter and the required deposit, we share a document request checklist to ensure thorough and efficient information gathering. We confirm valuation parameters and collect financial, operational, legal, and other pertinent data. Owner and management interviews are also scheduled to provide crucial context to the information gathered.

Financial modelling and drafting

We conduct financial analysis, prepare projections, and assess cash flows. We stress-test assumptions, apply valuation methodologies, reconcile indicated values and perform sanity checks.

Work product review and finalisation

We share draft results, gather feedback, review further as appropriate, and finalize the report. Post-valuation support is provided as needed for negotiations or legal purposes.