Business preparation guide · 29 October 2026
What information helps scope a business valuation?
Use this guide to prepare a focused business enquiry and agree a useful professional engagement. It covers information gathering and project planning. Entity-specific tax, legal and accounting conclusions require qualified review of the facts and current requirements.
Why does the purpose of a business valuation matter?
Explain whether the valuation supports a transaction, shareholder discussion, internal planning or reporting need. Identify the intended users and valuation date. Ask the adviser to define the basis, limitations and deliverables before agreeing the engagement.
What financial records should I gather for a valuation?
Prepare historical accounts, management reports, forecasts, debt details and a description of the business model. Identify unusual transactions and missing information. Keep assumptions and source evidence available so the adviser can assess the appropriate scope.
How should forecast assumptions be prepared for a valuation?
Document the commercial basis for sales, margins, investment and financing assumptions. Identify who approved them and when. Provide sensitivity information where available. The adviser should assess the data and methodology rather than accepting unsupported forecasts as facts.
What should a valuation proposal make clear?
Ask for the subject interest, valuation date, purpose, intended users, scope, information requirements and report format. Clarify exclusions and reliance limitations. Do not assume a valuation engagement includes due diligence, an audit or a guaranteed transaction price.
Turn the discussion into an agreed scope
Write down the objective, the entity and period involved, the information already available and the decisions still needed. Ask the proposed engagement team to identify the next information request and the person responsible for each response. Keep technical assumptions separate from verified facts.
Before work starts, confirm the deliverables, review process, fees and exclusions in writing. Ask how additional work will be approved and how confidential documents will be exchanged. This preparation supports an informed proposal; it does not determine the business’s legal or tax position.
Authoritative reference
Consult the relevant authority or reporting-standard source for current requirements. This guide provides preparation steps and does not reproduce the authority’s full rules.
Prepared by DSB Chartered Accountants LLC Technical positions, calculations, thresholds and filing decisions should be reviewed by the appointed professional for the relevant period.
Discuss the scope with our Business valuation advisory team.