Which kind of valuation do you actually need?

An indicative estimate can help with an initial discussion, but may use limited information and broad assumptions. A signed valuation report should identify its purpose, subject, date, evidence, methods, conclusion and limitations. Suitability depends on the engagement, not the document’s title alone.

Start with who needs to rely on the result

An owner exploring a possible sale may need a different level of work from parties implementing a shareholder agreement or an adviser dealing with a tax matter. If another person or organisation must rely on the report, ask them what scope, basis and professional requirements apply before you order.

A signature does not make every report suitable for every purpose. Court expert work, for example, needs separate consideration of instructions, independence, expertise and applicable requirements. A standard commercial report should not be repurposed for a court proceeding without checking suitability.

Compare the scope behind the deliverable

What an online calculator can and cannot show

A calculator can demonstrate how assumptions affect arithmetic. For example, changing earnings or a hypothetical multiple changes the output. It cannot, merely by doing that calculation, establish the correct earnings adjustments, ownership rights, market evidence or transaction perimeter.

Treat an automated range as a prompt for questions. Check whether the inputs include replacement management costs, cash, debt and working capital. An impressive-looking figure is still only as useful as the assumptions and information behind it.

Agree the scope before comparing prices

Ask for a description of the work, documents required, deliverable, timing, fee and process for clarifying factual matters in a draft. Identify whether additional entities, historical dates, disputed instructions or unusual assets could change the scope. That makes fee comparisons more meaningful.

Within Valuo, a signed report is prepared by the specialist business suited to the purpose, with the scope and a fixed fee confirmed in writing before work begins. Complex work and court expert engagements are assessed separately. Telling the valuer the purpose and the intended user lets the first conversation focus on the right type of work.

• Who needs the report, and for what decision?
• What is the required valuation date?
• Are specific instructions or agreements involved?
• What happens if the available evidence is incomplete?

General educational information, not advice. Examples are hypothetical and do not value a real business. The right treatment depends on the purpose, the evidence and the agreed scope.