What should both shareholders agree before instructing a valuer?
Agree the interest, valuation date, purpose, intended users, reporting scope and how information will be shared. If the parties disagree on the basis or the role of the valuer, flag that before instructing anyone.
Practical example: State whether the report is for negotiation or whether the appointment is intended to determine price under an agreement. The parties’ advisers should settle the appointment wording.
Identify the company, shares, valuation date, intended use and who can rely on the report. Have advisers resolve any dispute over the applicable basis before the valuer is asked to apply it.
Create a common information process
Agree what will be supplied, how questions and responses will be shared, and how conflicting information will be presented. Check independence and conflicts before agreeing terms.
Clarify what the report decides
Distinguish an independent opinion used in negotiations from an appointment intended to determine price under an agreement. The parties’ advisers should settle the appointment terms.