When is a valuation not a valuation?
When we are asked to value a business, our first few questions usually revolve around the purpose of the valuation and what type of valuation a client requires.
Depending on the circumstances, there are different types of valuations and some activities that some may call valuations are not actually valuations at all. As the veracity, reporting and costs of these different types of engagements may vary, it is imperative that the instructions are clear on the type and any limitation of the valuation.
The most common so called valuation is for an estimate of a sale price of a business. As part of the sale process, we may be asked to provide generic valuation statistics and parameters relevant to the industry in which the business operates. This is not a valuation, even if some valuation procedures are conducted as the engagement is to provide ancillary services related to the sale.
The types of valuations are: a Valuation, Limited Scope Valuation, or Calculation Engagement. APES 225 Valuation Services provides definitions of the different types of valuation engagements and gives examples of different types of valuation.
Family Law Single Expert Business Valuation
We act as independent business valuation experts for family law purposes. We can act as a single expert appointed by both parties or as a shadow business valuer appointed by one party.
Our objectives are to clearly demonstrate a sound and transparent basis of valuation in a way that all stakeholders can readily understand.
Small business valuation engagements can be undertaken for a fixed price, subject to the provision of timely and complete information.