Can I ask any accountant to do a business valuation?
The answer might be ‘yes’ but there are some important things to consider first. There are three important questions you should consider asking:
Does the accountant have specialised knowledge?
- Business Valuations are a highly specialised field. Most accountants would have just a handful of valuation requests in any given year. An accountant with in-depth knowledge and experience will be able to offer you the benefit of their expertise.
Can the accountant be regarded as completely independent?
- Business Valuations are often needed to help resolve a dispute or disagreement. For example, a partnership split or a related party transfer. It is important to know all Chartered Accountants or CPA Accountants are required to adhere to high levels of professional independence. A valuation conducted by an independent valuer will help avoid any possible suggestion that an existing relationship might have biased the result.
Does the accountant have the appropriate insurance?
- Conducting the valuation of a business enterprise is a specialised field, one not covered by most Accountants Professional Indemnity Insurance. Ask if the appropriate insurance is held before engaging an accountant to conduct a business valuation.