There are a number of considerations in selecting a business valuation professional. Before considering the technical qualifications, evaluate important characteristics when engaging any professional. A few of the important ones are personality (does it mesh with yours), communication skills, listening skills and trust. If the valuation person meets that basic criteria look at their technical qualifications.
Below are important ones:
- Organizations and credentials – An excellent summary is presented in this web link: https://marinercapitaladvisors.com/resources/the-abcs-of-business-valuation-designations/
- Background and experience – Extensive background and experience does help in the business valuation field.
- Specific industry experience – Experience in the industry of the company being valued is very important.
- Conflicts of Interest – This goes without saying but to be objective in rendering an independent opinion on a business valuation, the valuation professional should not have an ownership interest or personal relationship with the company they are valuing. Other independence challenges could occur through providing accounting/tax and valuation services at the same time.
- Neutrality – In litigation settings the position of valuation advocate often happens. In the long run this results in not properly servicing the client. A judge, mediator or independent third party will see the biased position.