Business Valuation Services Pricing and Scope

Factors Affecting the Scope of a Business Valuation

Report Type and Level of Analysis

The type of engagement and the resulting report can materially affect the scope of a valuation. A valuation engagement, in which we perform the procedures necessary to reach an independent conclusion of value, generally involves more work than a calculation engagement, in which we and the client agree on specific procedures in advance and the result is expressed as a calculated value. Reporting requirements, including whether a detailed or summary report is appropriate, can affect the scope in a similar way.

We determine the appropriate engagement and report type based on the circumstances of the assignment and applicable professional standards. For additional information regarding the types of valuation engagements and reports we provide, see our Business Valuation Reports page.

When a valuation is used in litigation, additional work may also be required for review of opposing expert analyses, deposition preparation, or trial testimony. For more information on this work, see our Litigation Support Services page.

Billing and Retainers

Our business valuation engagements are generally billed based on the professional time required to perform the agreed-upon work. For certain assignments where the scope can be reasonably defined in advance, a fixed fee may be established.

An upfront retainer is required for each engagement and is established based on the anticipated scope and circumstances of the matter. The engagement letter documents the scope, billing terms, retainer requirements, and other relevant terms before work begins.

Changes in Scope

The scope of a valuation may change as additional information becomes available or the requirements of the assignment develop. Additional entities or ownership interests may require analysis, financial information may require additional work, new valuation issues may arise, or additional reporting or litigation support may be requested.

If unforeseen work or an expansion of the agreed-upon scope is expected to materially affect the cost of the engagement, we discuss the additional work and associated terms with the client and formalize the change before proceeding.