Transactions and ownership
A valuation can support a proposed investment, acquisition, exit, share transfer or change in ownership. Understanding what is being valued is essential: an entire business, a particular class of shares and a minority interest are different subjects. Rights, restrictions and control can affect the analysis.
Corporate and reporting requirements
Share issues, employee securities, reorganisations, financial reporting and tax matters can each create a valuation requirement. The applicable framework may specify who can undertake the work, which date applies and what basis or method should be used. One report should not automatically be reused for every purpose.
A useful initial brief
Provide the entity name, transaction outline, securities involved, proposed timetable and reason for the report. Include the current capital structure and any relevant agreements. These details make it possible to identify the scope and request the right financial information from the outset.
Further reading
NYU Stern · Valuation resources (opens in a new tab)IBBI · Registered valuers (opens in a new tab)For general understanding. The appropriate method, professional appointment and regulatory treatment depend on the purpose, date and circumstances of the engagement.