Start with the agreement
Before work begins, we ask about any shareholder agreement, constitution, option or buy-sell arrangement. These may specify a valuation date, approach, appointment process or other requirements. Your lawyer should advise on the meaning and operation of those terms.
Distinguish the business from the parcel
The value of the whole business and the value of a particular ownership interest are different questions. Voting rights, control, transfer restrictions and the agreed basis of value may affect the analysis. Read our guide to valuing a minority shareholding.
Account for the practical change
The departure of an owner can affect remuneration, customer relationships, management capability and future earnings. The scope needs to say whether the valuation assumes continuing operations, a replacement manager or another defined scenario.
Confirm the role of the valuer
An adviser engaged by one party is not automatically the jointly appointed independent expert under an agreement. Appointment, conflicts and permitted use of the report should be settled before the engagement begins.
General information only. Your circumstances and the agreed engagement determine the work required.