Define the reader before the report
An owner exploring a sale may need a different document from an investor, lender or party to a formal process. Identify intended users, reliance requirements and the decision the report supports. Do not assume a report prepared for one purpose is suitable for another.
What a well-scoped report should explain
Look for the business or interest valued, valuation date, purpose, information sources, assumptions, methods, conclusion and limitations. Important judgements should be visible: normalised earnings, forecast credibility, comparable evidence and treatment of debt, cash or share rights.
A range still needs a rationale
A valuation range should show what drives its endpoints. Simply widening the range does not deal with uncertainty. Sensitivity analysis can illustrate how an earnings change or a different assumption affects the result, while clearly distinguishing plausible cases from mechanical calculations.
Information quality affects the work
Incomplete records do not always prevent an initial discussion, but gaps must be identified. Reconciliation work, missing contracts or unreliable forecasts may change the scope, timing and usefulness of the analysis. Flag these early so the engagement can be designed around the evidence available.
Commissioning checklist
Agree the output, timetable, information request and process for factual corrections. Confirm whether a presentation or follow-up discussion is included. If a formal proceeding or prescribed standard applies, establish suitability before appointment; this website does not imply that every specialist instruction can be accepted.
Your starting checklist.
- Intended users and reliance requirements
- Valuation date and purpose
- Required format or prescribed instructions
- Available records and known information gaps
Start with the purpose. Confidential documents can follow through an agreed channel.