Back-of-the-Envelope Valuations — The Benefits and Pitfalls of Such Requests
Before you take on a client’s request for a "back-of-the-envelope" valuation, be sure you understand the ramifications and are aware of the risks.
Oct 04, 2022
NASBA Field of Study
Handle quick requests the right way
Back-of-the-envelope valuations are quick and unofficial ways you can meet client needs. Seems harmless, right?
Not quite. Informal business valuation requests carry risks that you must weigh before proceeding.
Webcast attendees will learn what a back-of-the-envelope valuation means in terms of balancing a client's request with professional standards requirements.
Join us to discuss ways to ensure that you and the client understand the scope of work performed, including any limitations on its use.
You'll also learn about appropriate pricing and how and when to reject informal valuation requests.
- What is considered a "back-of-the-envelope" or informal business valuation request
- Determining the scope of work for a "back-of-the-envelope" engagement
- Evaluating the risks related to the client’s use of an informal valuation
- Distinguish between what the client needs and what you can do in accordance with professional standards.
- Recognize the professional standards that apply to back-of-the-envelope requests.
- Identify the risks with a back-of-the-envelope valuation project.
Who Will Benefit
- Professionals who do not regularly engage valuation professionals
- Professionals just starting out in the valuation profession
- Professionals looking for a refresher on the benefits and risks of this type of work
Group ordering for your team
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