Build a pack around the valuation question
A list of documents is only useful when it reflects the purpose and valuation date. Before gathering everything, confirm whether the work concerns the whole business or a holding, which date matters and who will use the result. A current sale discussion and a historical ownership transaction can require different evidence.
Keep the initial enquiry simple. Once suitability, confidentiality and scope are agreed, request the information list and sharing method for your assignment. Sending an unstructured archive too early can expose unnecessary information and make the important facts harder to find.
The core information checklist
| Information | Purpose in the analysis | Useful preparation |
|---|---|---|
| Recent annual accounts and detailed profit and loss | Understand the earnings history and accounting context | Identify unusual periods and major changes |
| Current monthly management accounts | Bridge the last year-end to current performance | Reconcile material differences from statutory accounts |
| Forecasts and assumptions | Understand expected growth, costs and investment | Keep versions and distinguish signed work from pipeline |
| Owner and related-party cost schedules | Examine maintainable operating costs | Explain roles, terms and proposed replacements |
| Cash, debt and working capital schedules | Connect operating value with equity and cash needs | Include dates and reconcile balances |
| Share structure and relevant agreements | Identify the precise rights being valued | Supply current documents and explain proposed changes |
The periods and depth requested depend on the assignment. Group accounts, overseas operations, different share classes or incomplete records can require additional work. A checklist is not confirmation that every item is sufficient for every valuation.
Add a short commercial narrative
Explain how the business earns revenue, its main customers and suppliers, key contracts, team structure and the owner’s role. Financial totals do not show whether a large customer can leave on short notice or whether the founder is the only person who can quote and win work.
Use aggregate information initially where appropriate. Customer concentration by percentage may help scope the question before named contracts are needed. Flag dependencies, upcoming renewals and material events rather than assuming they will be obvious from the accounts.
Make forecasts usable
Provide the assumptions behind the numbers: volume, pricing, margins, recruitment, investment and customer payment timing. Explain how the forecast compares with recent trading and earlier forecasts. A forecast that missed last year’s plan can still be useful, but the difference needs understanding.
Separate a contracted order, a qualified opportunity and a long-term ambition. Include a downside case where an important outcome is uncertain. A clear explanation of uncertainty is more informative than an unexplained growth percentage.
Reconcile three views of trading before sending more files
Make it possible to follow annual accounts, management accounts and the valuation earnings schedule without guessing. Start with the same financial year and list differences caused by accounting adjustments, classification, timing or a different reporting perimeter. The aim is an explained bridge, not identical presentation in every report.
Hypothetical reconciliation: management accounts show £160,000 EBITDA. A £12,000 year-end accrual omitted from the management pack reduces this to £148,000. Correcting an £8,000 duplicated expense increases it to £156,000. A separate proposed £20,000 normalisation adjustment would then produce £176,000, if supported and appropriate.
Keep the £20,000 normalisation separate from the corrections. An error correction, an accounting estimate and a judgement about continuing earnings are different things. Give each its own supporting record and status. The example does not establish that an adjustment should be accepted in an actual valuation.
Organise a minimum pack and then add purpose-specific evidence
| Stage | Useful starting information | Question it resolves |
|---|---|---|
| Initial scope | Business activity, broad scale, purpose, date and holding | What work is suitable and what will be requested? |
| Core financial review | Accounts, management information and reconciliations | What happened and how reliable are the starting figures? |
| Commercial context | Customer mix, owner roles, key terms and dependencies | What makes the financial result transferable or fragile? |
| Purpose-specific work | Relevant share rights, historical versions or transaction proposals | What additional evidence does this particular decision need? |
Different assignments need different access. A document relevant to one question may be unnecessary for another. Agree who should see the material and keep sensitive records within the chosen sharing process. The enquiry form remains a contact route, rather than a financial-document upload portal.
Four information problems worth flagging early
- A year-end change: explain the period length before comparing annual totals.
- Several entities: state which activities and balances belong to the business being valued and identify intra-group items.
- Unreconciled balances: mark the owner of the query and the work still required.
- A new accounting policy or reporting system: explain whether comparability has changed.
A clear limitation allows the scope and timetable to be discussed realistically. Concealing an unresolved issue behind a large volume of files usually makes the analysis harder, rather than making the evidence stronger.
Use a missing-information and version log
Create a simple register showing document name, period, version, source, date supplied and any limitation. If management accounts are provisional, label them. If a balance has not been reconciled, say so and identify who can explain it.
Before sharing, confirm access permissions and use the agreed channel. Do not include bank logins, passwords or unrelated personal records. Tell us about a deadline and the records you have available; we can discuss a realistic scope before you spend time assembling a complete pack.
Your next-step checklist
- Confirm the purpose, date and exact interest first.
- Reconcile current trading to the last filed accounts.
- Support proposed earnings adjustments with a schedule.
- Label draft figures, missing items and forecast versions.
Frequently asked questions
Do I need all the documents before enquiring?
No. Start with the valuation purpose and contact details. The information request and secure sharing arrangements can be discussed once the proposed work is understood.
Can you value a business with incomplete accounts?
We first assess what evidence is available and what can reasonably be supported. Additional reconstruction, a narrower scope or explicit limitations may be necessary; some assignments may not be suitable.
Should I send customer names and confidential contracts in the form?
No. The initial form is for an enquiry. Explain the information available and discuss an appropriate sharing method before sending confidential documents.
Should management accounts exactly match the annual accounts?
Not necessarily in presentation, but material differences should be reconciled and explained. Year-end adjustments, period definitions and reporting scope can create differences that matter to the analysis.
How should I explain several companies in one group?
Provide a simple entity and ownership outline, identify the activities included in the proposed valuation and flag intra-group transactions and balances. The detailed information request then follows the agreed scope.
Professional context and further reading
This page provides general preparation guidance from Consult EFC. Its worked examples are original, hypothetical illustrations, not client outcomes, observed multiples or individual valuation advice.
- ICAEW: business and share valuation — assignment and methods
- IVSC: scope of International Valuation Standards
These resources provide background. Linking them does not imply that every engagement is IVS-compliant or endorsed by ICAEW or IVSC. Any professional assignment requires an agreed purpose, scope and intended use.
Put the question to a qualified adviser.
Tell us the decision, valuation purpose and any deadline. We will discuss suitability, information, scope and fees before work begins.
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