5 Considerations When Hiring a Business Valuator
The decision to engage the services of an expert business valuator is an important one. After all, your business is likely your greatest asset, and there is much at stake. But how do you find the best fit for your specific needs? In our latest blog post, we explore 5 considerations to keep in mind, when selecting a business valuator:
1. Decide on the Type of Report You Need
There are a number of different types of business valuation reports designed to meet a wide range of needs. Do you require a calculation, an estimate, or a comprehensive valuation? A Comprehensive Valuation Report provides the highest level of assurance. In many cases, however, costs or scope limitations may necessitate the preparation of a calculation or estimate valuation report.
If you’re not sure what type of report is required for your specific situation, we invite you to contact us to schedule a complimentary consultation. We’ll explore your needs and identify the type of business valuation report best suited to meet them.
2. Obtain an Estimate of Fees Based on the Type of Report You Require
Once your needs have been determined, a valuator will prepare an engagement letter setting out the mandate along with an estimate of fees.
The estimate should be reviewed carefully, as it often includes many important details that may affect the total cost. Are any other experts potentially required (such as a real estate appraiser)? Who will be conducting the work? Who will attend mediation, arbitration, or court if necessary?
3. Determine the Valuator’s Experience
Experience and expertise is particularly important when selecting a business valuator. Always review the valuator’s curriculum vitae before retaining his/her services. How much experience have they had in the field of business valuations? Have they published any relevant articles on the topic? Have they facilitated any speaking engagements as a subject matter expert?
Specific experience can be crucial as well. Has the valuator had experience in your particular industry? Have they had experience testifying as an expert in court? Never underestimate the value that relevant experience will bring to the table.
4. Agree on a Timeline for the Completion of the Report
Business valuations often need to be completed within a specific timeframe. Always make sure that the valuator agrees to any mandated deadlines associated with the report. Ask them to be specific with their response; are there any disclosure impediments that may affect timing?
5. Review Key Aspects of the Valuator’s Process
Finally, be sure to review the valuator’s process, and any scope impediments. Consider the access to the information needed for the engagement – is it in your possession, or in the hands of the opposing party? Has an Affidavit of Documents been prepared and exchanged? Have Examinations for Discovery been conducted, and transcripts prepared? Will it be necessary to bring a motion to compel appropriate disclosure? Consider interviews to be conducted (with whom and when).
Consult with the Team of Expert Business Valuators at Fuller Landau
The process of conducting a thorough and objective business valuation in Toronto can be quite complex. At Fuller Landau, our team of Chartered Business Valuators is widely recognized within the industry for delivering objective, detailed, and well-reasoned reports with a commitment to quality and integrity.