1. Define the decision
Identify the business interest, relevant date, purpose and intended users. Describe any proposed sale, buyout or dispute, and ask recipients for their specific requirements. These details determine what sort of engagement needs to be considered.
2. Agree scope and suitability
Discuss the required role, independence or conflicts, information available and any specialist input. The proposal should identify outputs, assumptions, reliance, timing and fees. No fixed turnaround or third-party acceptance is implied by an initial enquiry.
3. Review evidence and assumptions
Reconcile the starting financial information and document proposed adjustments. Consider the approach appropriate to the business and brief. Keep unresolved information visible and explain how material assumptions affect the analysis rather than treating estimates as facts.
4. Explain the conclusion and its use
The agreed deliverable should explain what has been valued, the evidence used, assumptions and limitations. Review how it may be used before sharing it for a different purpose. A valuation is not a guarantee of the price a buyer will offer or the terms on which a transaction will complete.