CHOOSING A FIRM
Start with the decision the valuation must support.
The appropriate experience, scope and deliverable depend on the intended use. This educational guide can help you prepare questions; it is not financial, legal, tax or valuation advice.
1. Define the purpose and intended use
Write down the decision the valuation must support, the ownership interest, the relevant date and who expects to rely on the work. Transaction planning, tax reporting, equity compensation, financial reporting, financing and disputes can require different scopes. Ask the intended user—such as a lender, counsel, accountant, board or agency—to confirm its requirements.
2. Separate a rough estimate from a formal engagement
A preliminary estimate may help frame a conversation, but it can use limited information and may not be designed for third-party reliance. A formal engagement should define the standard and premise of value, procedures, assumptions, limitations, deliverable and intended use. Compare what the work supports, not only the final number.
3. Ask about relevant experience and the assigned team
Ask for experience relevant to the purpose, industry, ownership interest and complexity of your matter. Identify who will do the analysis, who will review it and how senior staff will remain involved. A credential can be useful context, but no single credential, report type or process universally satisfies every lender, regulator, court or tax authority.
4. Compare scope, deliverables and fees
Put proposals side by side: subject interest, valuation date, intended users, procedures, assumptions, information requests, report or presentation, supporting schedules, meetings, revisions and responses to third parties. Ask what is excluded, what can change the scope and how additional work is priced.
5. Identify conflicts and independence requirements
Ask about financial, referral, prior-service or other relationships with the parties. The independence standard, if any, depends on the assignment and intended user. Ask the provider to explain how an actual or perceived conflict will be handled.
6. Prepare focused questions
Bring a short purpose-and-use summary and ask how the provider will handle forecasts, normalization adjustments, non-operating assets, customer concentration, ownership rights and uncertainty where relevant. Confirm communication points, secure document transfer and how factual errors or changed circumstances will be addressed.