Financial advisory combines valuation analysis with the commercial questions behind a funding, acquisition, restructuring or ownership decision.
Understanding Valuation & Financial Advisory
When to consider this service
Business owners and functional leaders responsible for a defined operating, technology or people-management requirement can use this service to clarify a particular issue. A useful starting question is: “Is an estimated valuation the same as an agreed transaction price?” Begin with the facts behind that question rather than assuming that a standard package will resolve it.
Scope of work
The engagement can cover the following workstreams. The proposal specifies which apply to your matter and what evidence or specialist input is needed.
- Clarify valuation purpose and audience.
- Analyse cash flows and transaction assumptions.
- Compare financial scenarios and implications.
Documents and information to prepare
Start with the records below where available. They help establish the facts before a more specific checklist is agreed.
- Financial statements.
- Forecasts.
- Capitalisation tables.
- Proposed transaction terms.
Provide the relevant entity, transaction or reporting period and any existing notice or deadline. Identify missing or inconsistent records so they can be addressed explicitly.
A key issue to resolve
A valuation is sensitive to purpose, date and assumptions; it is not a promise of the price a counterparty will accept.
How the engagement works
- Define the question: clarify valuation purpose and audience, using the available financial statements and the facts you provide.
- Examine the evidence: analyse cash flows and transaction assumptions. Record unresolved information and the assumptions that affect the analysis.
- Agree the action: compare financial scenarios and implications. Set the required deliverables, responsible owners and any follow-up or external dependency.
Deliverables, fees and timing
The proposal for Valuation & Financial Advisory sets out the analysis, documentation or coordination deliverables and the work you retain. The availability of financial statements, forecasts, capitalisation tables and proposed transaction terms affects readiness and the amount of follow-up needed. Fees and the working schedule are agreed after that initial assessment. Any required independent report, legal representation or authority application is identified as a separate responsibility where relevant.
Discuss your requirement
Share a short summary of your Valuation & Financial Advisory requirement and the records already available. BIATConsultant can assess the proposed scope and explain the next steps.
FAQ
Practical questions about Valuation & Financial Advisory.
Is an estimated valuation the same as an agreed transaction price?
A valuation is sensitive to purpose, date and assumptions; it is not a promise of the price a counterparty will accept.
What records should I prepare for Valuation & Financial Advisory?
What can the scope of Valuation & Financial Advisory include?
How are fees and the schedule agreed?