Business valuation FAQ

Simple assignments may take days once complete information is available; complex, audit-facing, multinational or dispute work can take several weeks or longer. Ask whether the quoted timetable starts at engagement or after receipt of complete information.

Usually not responsibly. A meaningful quotation needs the purpose, valuation date, intended users, industry, business model, scale, ownership interest, available information and deadline.

No. Size matters, but complexity and reliance can matter more. A smaller company with unusual rights, poor records or a dispute may require more work than a larger straightforward business.

No. A valuation is an opinion under defined assumptions. A negotiated price can reflect synergies, bargaining power, financing, urgency, control, strategic motives and deal terms.

It can be a rough educational tool, but it may ignore normalisation, debt, surplus assets, customer concentration, share rights, liquidity, control and purpose-specific requirements.

They may use different information, forecasts, comparables, discount rates, methods, legal assumptions or interpretations of risk. The important question is whether each conclusion is logically supported and transparent.

You can ask about structure and typical contents. Firms generally cannot share confidential client reports. A generic template—especially one produced by AI—does not demonstrate the quality of case-specific analysis.

Not for every purpose. For accounting and audit requirements, strong accounting-standard knowledge can significantly improve the work and communication with auditors.

Start with a one-page background using the suggested message format. For the valuation itself, commonly requested items include financial statements or management accounts at the valuation date, business and ownership information, forecasts where relevant, key agreements and method-specific records. See the full information checklist.

Audited financial statements are generally preferred because they provide a stronger reference point. Recent management accounts are commonly acceptable when audited accounts are unavailable or do not align closely with the valuation date, but their status, preparation basis and any limitations should be explained.

SFRS(I) refers to Singapore Financial Reporting Standards (International) and related interpretations issued by the Accounting Standards Committee. For accounting valuations, the valuer should confirm whether SFRS(I), FRS, IFRS or another framework applies because the required valuation objective and documentation can differ.

Aswath Damodaran’s Damodaran Online website and YouTube channel provide extensive free classes, notes, data and valuation lectures.