In conducting a valuation engagement, we follow a proven, efficient process that is designed to maximize our efficiency and minimize the time invested by client management to facilitate the process.
This consists of a telephone conversation that takes 30 minutes or less. We use this conversation to learn more about what the client is seeking to accomplish, the timeframes involved, the company’s history and stage of development and to otherwise make sure that we understand the client’s needs, complexities and expectations. This conversation also provides an opportunity to discuss our qualifications and to answer the prospective client’s questions. There is no charge for this interview.
Proposal and engagement.
When the client is ready to move forward, we provide a detailed proposal that describes the services to be rendered, the interest to be valued, the work product that will result and the fees to be paid for our services. This proposal also includes a sample of our typical information request to acquaint the client with the information we will need for the project. If the proposal meets with the client’s approval, it is signed and becomes the engagement agreement for the project.
Once the engagement agreement has been concluded, we will provide a written information request listing the information we need to carry out the engagement.
Following receipt of the necessary information from our client, we enter their data into our proprietary valuation templates, determine the appropriate valuation methods, and conduct research to obtain information about economic and financial market conditions, the client’s industry, similar companies and other valuation-related subjects. We prepare a preliminary valuation analysis and conduct an internal review of findings and areas for further inquiry. We then schedule an interview with management to discuss the company’s business, strengths, weaknesses and outlook and we obtain answers to open question related to the company’s valuation.
Following completion of the interview, we complete a draft report that describes the facts and assumptions we relied upon, the valuation methods we applied and the valuation conclusions we reached. The draft report is sent to the client for review and comment. For standard 409A/123(R) assignments, the draft report typically is delivered within three weeks after we receive all of the necessary valuation information from the client. Once we have received client feedback, we prepare the final report and send a signed electronic copy (PDF file) to the client for their records.