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Valuation Engagement Letter
I need a Valuation Engagement Letter for my Toronto-based technology company that's preparing for a Series B funding round in March 2025, with specific focus on intellectual property valuation and compliance with Ontario securities regulations.
1. Addressee and Date: Formal business letter heading with client's name, position, company, and address
2. Introduction: Opening paragraph identifying the parties and purpose of the engagement
3. Scope of Services: Detailed description of the valuation services to be provided, including the subject of valuation and valuation date
4. Purpose and Intended Use: Specific purpose of the valuation and intended users of the valuation report
5. Professional Standards: Statement of compliance with CICBV standards and other applicable professional requirements
6. Information Requirements: List of documents and information required from the client to perform the valuation
7. Timeline and Deliverables: Expected completion date and description of deliverables
8. Fees and Payment Terms: Professional fees, payment schedule, and expense reimbursement terms
9. Confidentiality: Provisions regarding the handling of confidential information
10. Limitations and Restrictions: Specific limitations of the engagement and restrictions on the use of the valuation report
11. Professional Liability: Statement regarding professional liability and any limitations thereof
12. Acceptance and Authorization: Signature blocks and instructions for accepting the engagement
1. Dispute Resolution: Terms for handling disputes, used when dealing with high-value or complex valuations
2. Multiple Offices Involvement: Required when multiple offices or jurisdictions are involved in the valuation
3. Public Company Considerations: Additional terms required for valuations involving public companies
4. Conflict Disclosure: Detailed disclosure of potential conflicts, used when relevant relationships exist
5. Specialized Methodology: Description of unique valuation approaches, needed for complex or unusual valuations
6. Third-Party Reliance: Terms regarding third-party use of the valuation, included when third-party reliance is anticipated
1. Schedule A - Fee Schedule: Detailed breakdown of professional fees, hourly rates, and payment terms
2. Schedule B - Required Information List: Comprehensive list of documents and information required from the client
3. Schedule C - Team Structure: Organization chart and biographies of key team members involved in the engagement
4. Appendix 1 - Standard Terms and Conditions: Detailed professional terms and conditions governing the engagement
5. Appendix 2 - Valuation Methodology Overview: General description of valuation approaches and methods to be considered
6. Appendix 3 - Client Responsibilities: Detailed outline of client's obligations and responsibilities during the engagement
Authors
Financial Services
Professional Services
Manufacturing
Technology
Real Estate
Healthcare
Retail
Energy
Mining
Transportation
Agriculture
Construction
Hospitality
Education
Non-Profit
Finance
Legal
Corporate Development
Tax
Mergers & Acquisitions
Investment
Treasury
Accounting
Business Development
Executive Management
Board of Directors
Advisory Services
Chief Financial Officer
Chief Executive Officer
Corporate Development Director
Financial Controller
Business Valuator
Chartered Business Valuator
Investment Manager
Transaction Advisory Partner
M&A Director
Corporate Lawyer
Tax Director
Finance Manager
Business Development Manager
Board Member
Company Secretary
Shareholder Representative
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