Write the question before asking for a price
Describe the decision, the company or interest, the relevant date and who needs the answer. An owner considering retirement has a different brief from a shareholder implementing a documented transfer. Identify any deadline and explain where it comes from.
Ask providers to confirm their understanding in writing. If a quote is based on valuing the entire company while you need a minority holding, the price comparison is already unreliable. Missing instructions can be more consequential than the difference between two fee amounts.
Separate the output from the label
Ask what you will receive: a discussion, a short memorandum, an indicative range or a reasoned report. Confirm whether the output explains methods, assumptions and sensitivities, and whether a findings meeting is included. The word certified alone does not describe the actual deliverable.
Check who is entitled to use the work. A report for your internal planning should not automatically be presented to a lender, tax authority or another shareholder as if it were prepared for their reliance. Explain any external requirements before commissioning.
Understand the assumed information quality
A fee may assume reconciled management accounts, a usable forecast and clear ownership records. Another proposal may include substantial analysis to resolve gaps. Ask how incomplete records, additional entities or new questions will be handled.
For example, two hypothetical quotes could both cover an earnings valuation, while only one includes reviewing owner adjustments and the cash/debt bridge. The outputs could differ materially despite a similar title. Request an explicit information list and clarify which facts will be independently checked and which will be accepted as supplied.
Ask how judgement will be explained
The provider should be able to describe how methods will be selected for the assignment and evidence available. A fixed promise to use a particular earnings multiple before seeing the business may conceal important differences in risk, cash requirements and comparability.
You do not need a technical textbook in the proposal. You do need a clear description of the analytical approach and its limitations. Ask whether material earnings adjustments and sensitivities will be visible, so the conclusion can be understood rather than merely repeated.
Clarify independence, conflicts and scope changes
Explain who is instructing the work, who pays and which other parties are involved. Ask how conflicts are considered and what the provider means by independent. A professional qualification and the independence of a particular assignment are related but separate questions.
Agree how scope changes are authorised. Additional valuation dates, revised share rights or a new transaction structure can require more analysis. A transparent process for agreeing extra work is more useful than an apparently low fixed fee that leaves those questions unanswered.
Questions to send with the same brief
Ask each provider to answer the same short list and retain the replies. This makes the comparison reviewable and highlights differences that a fee total cannot show. If an answer remains ambiguous, clarify it before accepting the proposal. Do not assume an omitted procedure is included simply because another provider normally performs it.
| Area | Evidence to examine | Question to resolve |
|---|---|---|
| Evidence | Which records are required and what checks are included? | Clarify whether supplied figures are relied on or reconciled. |
| Output | What analysis and findings discussion will I receive? | Separate an indicative view from a reasoned report. |
| Changes | What happens if the date, rights or users change? | Agree authorisation and fee treatment in advance. |
Use a comparison sheet to reach a decision
Place each proposal against the same headings: subject, purpose, date, users, information, analysis, output, timing, fee assumptions and exclusions. Highlight unanswered questions and ask providers to clarify them. Preserve their responses with the engagement documents.
Consult EFC can discuss the brief and provide a scoped proposal after understanding the need. Start with non-confidential background through the enquiry form. Selecting the right scope helps avoid paying for work that cannot support the intended decision; it does not guarantee acceptance by another party.
Your preparation checklist
- Give each provider the same purpose, subject and date.
- Compare written deliverables and intended users.
- Ask which information checks and analysis are included.
- Agree the process for additional work and external reliance.
Frequently asked questions
Is the cheapest valuation necessarily unsuitable?
No. A focused assignment may need less work. Compare the actual scope and suitability rather than assuming either a low or high fee proves quality.
Does certified mean a valuation must be accepted?
No. Ask what the term means, the provider’s credentials and whether the output meets the intended recipient’s requirements.
Can an indicative valuation later become a formal report?
Potentially, but additional instructions, evidence and analysis may be needed. Agree a new scope before using it for a different purpose.
Sources and scope
This is general preparation guidance. Worked examples are original hypothetical illustrations, not client outcomes, market multiples or individual advice. Agree the purpose, evidence and scope before commissioning professional work.
Professional background: ICAEW business and share valuation resources and IVSC standards overview. These links provide context and do not imply endorsement, assurance or compliance for an individual engagement.
Explore the related questions
Discuss the decision with Consult EFC
Tell us the decision, approximate timing and the information available. We will discuss suitability, scope and fees before work begins. Please arrange a suitable channel before sharing confidential documents.