Introduction Phase
Initial Contact
Introduction to the owners or officers of a business or partnership ("the Company"), either through referrals from the Company’s attorney, certified public accountant, or other professional advisor or direct contact with the Company.
Information Exchanged
Discussions held to develop a basic understanding of the valuation or advisory requirements.
Background and qualifications provided.
Potential clients send financial and descriptive information (usually financial statements and marketing brochures), as well detailed information outlining the specific need for services.
Telephone conversations and/or initial meetings serve to clarify the purpose and scope of the valuation engagement.
Engagement Phase
Engagement Letter
An Engagement Letter will be prepared to review and confirm our understanding of the project requirements and to outline the business arrangement under which we will work together.
The Engagement Letter will specify:
1. Purpose of the engagement
2. Standard of value under which it will be provided (e.g., fair market value or fair value)
3. Effective date of the analysis, and the scope of the report that will be provided.
4. Timetable for completion of the engagement
5. Outline the proposed payment arrangement of professional fees and expenses.
A Valuation Information Checklist will be included to facilitate the accumulation of information necessary to conduct the assignment.
Client Execution of Engagement Letter
Client executes the Engagement Letter and returns it with the agreed upon retainer.
Valuation Analysis Phase
Information Collected by Client
Company provides information requested in the Valuation Information Checklist.
Vantage Point Advisors will assist in facilitating the process and prioritizing the information required.
Preliminary Analysis
Upon receipt of information from client, Vantage Point begins the preliminary analysis, appropriate industry and economic research and an initial review of client’s financial statements and forecast.
On-Site Visit
Engagements may require an on-site visit. In other cases, however, we will conduct a telephone interview to discuss historical performance and anticipated future outcomes.
During our on-site visits/calls, we seek to review in detail the Company’s background, financial position, operations and outlook. Our review would also include asking questions about the documents provided and any corporate documents that may not have been exchanged by mail (e.g., board minutes or other confidential documents). If on-site, we would request a tour of the facilities and operations. We will also use this time to respond to questions that the client/management may have about the valuation process.
Draft Results Phase
Following our meeting, further research regarding publicly traded guideline companies or relevant transactions involving public or private companies is completed. The valuation analysis is completed, and a draft valuation report is prepared. Following an internal review, the draft deliverable is sent to the client for their review.
One purpose of the draft report is to assure the factual and conceptual correctness of information used in the report. In addition, the draft provides an objective basis to discuss the components of the valuation with the client.
Report Delivery Phase
Following the client’s review of the draft report, we are then able to finalize the report. Final reports are normally issued within a day or two of our agreement over the draft reports
