{"id":3191,"date":"2020-08-18T09:00:06","date_gmt":"2020-08-18T13:00:06","guid":{"rendered":"http:\/\/stage.tbkdev.com\/dev\/davismartindale.com\/src\/?p=3191"},"modified":"2020-09-17T15:12:41","modified_gmt":"2020-09-17T19:12:41","slug":"business_valuation_engagement_joint_retainer","status":"publish","type":"post","link":"https:\/\/stage.tbkdev.com\/dev\/davismartindale.com\/src\/business_valuation_engagement_joint_retainer\/","title":{"rendered":"The Process of a Business Valuation \u2013 Engagement by Multiple Parties"},"content":{"rendered":"<div class=\"wpb-content-wrapper\"><p>[vc_row][vc_column][alternating_content_container]\t<div class=\"alternating-content-item-wrapper bg-light\">\n\t\t\t\t\t\t\t\t\t<div class=\"alternating-content-item-image center-center\" style=\"background-image: url('https:\/\/stage.tbkdev.com\/dev\/davismartindale.com\/src\/app\/uploads\/2020\/06\/Engagement-Process-Part-2-801x535.png'); background-size: contain;\"><\/div>\n\t\t\t\t\t\t\t<div class=\"alternating-content-item-content-container\">\n\t\t\t<div class=\"alternating-content-item-inner\">\n\t\t\t\t\t\t\t\t\t<span class=\"alternating-content-item-decor\">\n\t\t\t\t\t\tBlog\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<h2 class=\"alternating-content-item-heading\">\n\t\t\t\t\t\tThe Benefits and Pitfalls of Jointly Retained Engagements\t\t\t\t\t<\/h2>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"alternating-content-item-content\">\n\t\t\t\t\t\t<p>This blog outlines the six important steps to your business valuation joint engagement with Davis Martindale Advisory Services.<\/p>\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t<\/div>\n[\/alternating_content_container][basic_container container_size=&#8221;container container-narrow&#8221;][vc_column_text]Chartered Business Valuators (\u201cCBV\u201d) are often jointly retained by parties in an attempt to identify and resolve issues in dispute. When properly conducted, joint engagements may create a stronger perception of fairness and foster a conducive climate for settling financial matters. We discuss the benefits and pitfalls of joint engagements in a previous blog:\u00a0<a href=\"http:\/\/www.davismartindale.com\/blog-posts\/business_valuation_engagement\/\">Process of a Business Valuation \u2013 Engagement by One Party<\/a>.<\/p>\n<p>Once opposing parties have agreed to jointly engage a CBV, it is important for all parties to understand the engagement process. We outline the six important steps to your joint engagement with Davis Martindale Advisory Services:<\/p>\n<h4><strong>1. Engagement Letter and Retainer<\/strong><\/h4>\n<p>The engagement letter is our contract with all parties. It is the starting point, and often the ending point of the process. Our engagement letter sets out the nature and instructions of the assignment, the purpose, the fees and the terms and conditions. At the same time, we will send out a conflict check to ensure the file would not put any parties in a conflict of interest position.<\/p>\n<p>For all joint engagements, we will adhere to the jointly agreed instructions listed in the engagement letter. New or revised instructions will not be adopted unless accepted by all parties involved in the matter. Before we begin the engagement, we request a signed copy of the engagement letter from all parties. We also request a retainer, which usually consists of the quoted engagement fees.<\/p>\n<h4><strong>2. Preliminary Request<\/strong><\/h4>\n<p>The timing of issuing our report is dependent on when we receive all of the preliminary information. Although one party usually has more knowledge of the business, our information request will be sent to all parties involved. Likewise, in the spirit of full disclosure, all information received in connection with the matter from one party will be shared with the other party \u2013 no information may be kept confidential.<\/p>\n<h4><strong>3. Follow-up Questions<\/strong><\/h4>\n<p>After we receive the signed engagement letter, retainer, and responses to our preliminary requests, we begin drafting the report. When preparing the report and reviewing the information you provided, there may be additional questions. Similar to the preliminary request, all correspondence and information received from one party will be shared with the other parties.<\/p>\n<p>When conducting joint engagements, our preference is for all parties to attend telephone calls. If, however, one or more parties are unable to attend a call, notes will be taken and circulated.<\/p>\n<h4><strong>4. Draft Report<\/strong><\/h4>\n<p>Upon receiving the answers to our preliminary request, we will typically have a draft completed in 3-4 weeks for a Calculation Valuation or Income for Support engagement, and 4 weeks for an Estimate Valuation.<\/p>\n<p>Draft reports for joint retainers will redact the final conclusion. The purpose of a draft is for the parties to read the report and confirm they agree with the methodology and the assumptions included therein. We welcome any questions or comments from either party. Once again, all correspondence to and from the CBV may be distributed to ensure everyone has equal access to information.<\/p>\n<h4><strong>5. Representation Letter<\/strong><\/h4>\n<p>The representation letter is different from the engagement letter. It is signed at the end of the process and confirms that we have relied on information and discussions with both parties, and confirms that neither party is aware of any errors, omissions or misrepresentations that would have a significant impact on the conclusion of our report. The representation letter will be sent with the draft report and must be returned to us before we can issue a final report.<\/p>\n<h4><strong>6. Final Report<\/strong><\/h4>\n<p>Once all parties have approved the draft report and signed the representation letters, we can issue our final report, unredacted.<\/p>\n<p><strong>If you are interested in undertaking a valuation assignment, <a href=\"https:\/\/stage.tbkdev.com\/dev\/davismartindale.com\/src\/contact\/\" target=\"_blank\" rel=\"noopener noreferrer\">give the professionals at Davis Martindale a call<\/a>. We would love to work with you.<\/strong>[\/vc_column_text][\/basic_container][basic_container container_size=&#8221;container container-narrow&#8221;]<div class=\"templatera_shortcode\"><div class=\"vc_row wpb_row vc_row-fluid\"><div class=\"wpb_column vc_column_container vc_col-sm-12\"><div class=\"vc_column-inner\"><div class=\"wpb_wrapper\"><div class=\"basic-container row   \" >\n\t<div class=\"bg-overlay none\"><\/div>\n\t<div class=\"container\">\n\t\t\t<div class=\"text-left\">\n\t\t<a class=\"general-button btn  btn-info \" href=\"https:\/\/stage.tbkdev.com\/dev\/davismartindale.com\/src\/subscribe\/\" rel=\"\" target=\"\" title=\"Subscribe\">\n\t\t\tSubscribe to Davis Martindale's Valuation Blogs\t\t<\/a>\n\t<\/div>\n\n\t<\/div>\n<\/div>\n<\/div><\/div><\/div><\/div><div class=\"vc_row wpb_row vc_row-fluid\"><div class=\"wpb_column vc_column_container vc_col-sm-12\"><div class=\"vc_column-inner\"><div class=\"wpb_wrapper\"><div class=\"basic-container row   \" >\n\t<div 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Litigation<\/strong><\/p>\n\n\t\t<\/div>\n\t<\/div>\n<\/div><\/div><\/div><div class=\"wpb_column vc_column_container vc_col-sm-3\"><div class=\"vc_column-inner\"><div class=\"wpb_wrapper\"><!DOCTYPE html PUBLIC \"-\/\/W3C\/\/DTD HTML 4.0 Transitional\/\/EN\" \"http:\/\/www.w3.org\/TR\/REC-html40\/loose.dtd\">\n<html><body><div class=\"wpb_single_image wpb_content_element vc_align_center wpb_content_element\">\n\t\t\n\t\t<figure class=\"wpb_wrapper vc_figure\">\n\t\t\t<div class=\"vc_single_image-wrapper vc_box_border  vc_box_border_grey\"><img decoding=\"async\" class=\"vc_single_image-img \" src=\"https:\/\/stage.tbkdev.com\/dev\/davismartindale.com\/src\/app\/uploads\/2020\/03\/Tyler-Kelly-2-2020-200x200.jpg\" width=\"200\" height=\"200\" alt=\"Head shot of Tyler\" title=\"Tyler Kelly - Valuation Associate - Davis Martindale\" loading=\"lazy\"><\/div>\n\t\t<\/figure>\n\t<\/div>\n<\/body><\/html>\n\n\t<div class=\"wpb_text_column wpb_content_element\" >\n\t\t<div 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post-listing__item__button\">Read More<\/span>\r\n\t\t\t\t\t\t\t<\/a>\r\n\t\t\t\t\t\t\t\t<a class=\"post-listing__item\" href=\"https:\/\/stage.tbkdev.com\/dev\/davismartindale.com\/src\/business_valuation_engagement_joint_retainer\/\">\r\n\t\t\t\t<div>\r\n\t\t\t\t\t\t\t\t\t\t\t<div class=\"post-listing__item__image\" style=\"background-image: url(https:\/\/stage.tbkdev.com\/dev\/davismartindale.com\/src\/app\/uploads\/2020\/06\/Engagement-Process-Part-2-768x768.png)\"><\/div>\r\n\t\t\t\t\t\r\n\t\t\t\t\t<h2 class=\"h3 post-listing__item__title\">\r\n\t\t\t\t\t\tThe Process of a Business Valuation \u2013 Engagement by Multiple Parties\t\t\t\t\t<\/h2>\r\n\r\n\t\t\t\t\t\r\n\t\t\t\t\t<p>Chartered Business Valuators (\u201cCBV\u201d) are often jointly retained by parties in an attempt to identify and resolve issues in dispute. When properly conducted, joint engagements ...<\/p>\n\t\t\t\t<\/div>\r\n\t\t\t\t\t\t\t\t\t<span class=\"btn btn-primary btn-sm post-listing__item__button\">Read More<\/span>\r\n\t\t\t\t\t\t\t<\/a>\r\n\t\t\t\t\t\t\t\t<a class=\"post-listing__item\" href=\"https:\/\/stage.tbkdev.com\/dev\/davismartindale.com\/src\/business_valuation_engagements\/\">\r\n\t\t\t\t<div>\r\n\t\t\t\t\t\t\t\t\t\t\t<div class=\"post-listing__item__image\" style=\"background-image: url(https:\/\/stage.tbkdev.com\/dev\/davismartindale.com\/src\/app\/uploads\/2020\/06\/Engagement-Process-Part-1-747x747.png)\"><\/div>\r\n\t\t\t\t\t\r\n\t\t\t\t\t<h2 class=\"h3 post-listing__item__title\">\r\n\t\t\t\t\t\tThe Process of a Business Valuation \u2013 Engagement by One Party\t\t\t\t\t<\/h2>\r\n\r\n\t\t\t\t\t\r\n\t\t\t\t\t<p>You\u2019ve decided to engage a Chartered Business Valuator (\u201cCBV\u201d) to value your business. Perhaps you\u2019re looking to\u00a0sell your business\u00a0and want to get an idea what ...<\/p>\n\t\t\t\t<\/div>\r\n\t\t\t\t\t\t\t\t\t<span class=\"btn btn-primary btn-sm post-listing__item__button\">Read More<\/span>\r\n\t\t\t\t\t\t\t<\/a>\r\n\t\t\r\n\t\t\t\t\t<div class=\"blogs-paging\">\r\n\t\t\t\t<div class=\"nav-previous\"><\/div>\r\n\t\t\t\t<div class=\"blog-page-count\">\r\n\t\t\t\t\t<a class=\"page-count-link\" href=\"https:\/\/stage.tbkdev.com\/dev\/davismartindale.com\/src\/wp-json\/wp\/v2\/posts\/3191\/\">1<\/a><a class=\"page-count-link\" href=\"https:\/\/stage.tbkdev.com\/dev\/davismartindale.com\/src\/wp-json\/wp\/v2\/posts\/3191\/page\/2\/\">2<\/a><a class=\"page-count-link\" href=\"https:\/\/stage.tbkdev.com\/dev\/davismartindale.com\/src\/wp-json\/wp\/v2\/posts\/3191\/page\/3\/\">3<\/a><a class=\"page-count-link\" href=\"https:\/\/stage.tbkdev.com\/dev\/davismartindale.com\/src\/wp-json\/wp\/v2\/posts\/3191\/page\/4\/\">4<\/a><a class=\"page-count-link\" href=\"https:\/\/stage.tbkdev.com\/dev\/davismartindale.com\/src\/wp-json\/wp\/v2\/posts\/3191\/page\/5\/\">5<\/a><a class=\"page-count-link\" href=\"https:\/\/stage.tbkdev.com\/dev\/davismartindale.com\/src\/wp-json\/wp\/v2\/posts\/3191\/page\/6\/\">6<\/a><a class=\"page-count-link\" href=\"https:\/\/stage.tbkdev.com\/dev\/davismartindale.com\/src\/wp-json\/wp\/v2\/posts\/3191\/page\/7\/\">7<\/a><a class=\"page-count-link\" href=\"https:\/\/stage.tbkdev.com\/dev\/davismartindale.com\/src\/wp-json\/wp\/v2\/posts\/3191\/page\/8\/\">8<\/a><a class=\"page-count-link\" href=\"https:\/\/stage.tbkdev.com\/dev\/davismartindale.com\/src\/wp-json\/wp\/v2\/posts\/3191\/page\/9\/\">9<\/a><a class=\"page-count-link\" href=\"https:\/\/stage.tbkdev.com\/dev\/davismartindale.com\/src\/wp-json\/wp\/v2\/posts\/3191\/page\/10\/\">10<\/a><a class=\"page-count-link\" href=\"https:\/\/stage.tbkdev.com\/dev\/davismartindale.com\/src\/wp-json\/wp\/v2\/posts\/3191\/page\/11\/\">11<\/a><a class=\"page-count-link\" href=\"https:\/\/stage.tbkdev.com\/dev\/davismartindale.com\/src\/wp-json\/wp\/v2\/posts\/3191\/page\/12\/\">12<\/a><a class=\"page-count-link\" href=\"https:\/\/stage.tbkdev.com\/dev\/davismartindale.com\/src\/wp-json\/wp\/v2\/posts\/3191\/page\/13\/\">13<\/a><a class=\"page-count-link\" href=\"https:\/\/stage.tbkdev.com\/dev\/davismartindale.com\/src\/wp-json\/wp\/v2\/posts\/3191\/page\/14\/\">14<\/a><a class=\"page-count-link\" href=\"https:\/\/stage.tbkdev.com\/dev\/davismartindale.com\/src\/wp-json\/wp\/v2\/posts\/3191\/page\/15\/\">15<\/a><a class=\"page-count-link\" href=\"https:\/\/stage.tbkdev.com\/dev\/davismartindale.com\/src\/wp-json\/wp\/v2\/posts\/3191\/page\/16\/\">16<\/a><a class=\"page-count-link\" href=\"https:\/\/stage.tbkdev.com\/dev\/davismartindale.com\/src\/wp-json\/wp\/v2\/posts\/3191\/page\/17\/\">17<\/a>\t\t\t\t<\/div>\r\n\t\t\t\t<div class=\"nav-next\"><a href=\"https:\/\/stage.tbkdev.com\/dev\/davismartindale.com\/src\/wp-json\/wp\/v2\/posts\/3191\/page\/2\/\" >Next<\/a><\/div>\r\n\t\t\t<\/div>\r\n\t\t\t<\/div>\r\n[\/basic_container][\/vc_column][\/vc_row]<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"Blog The Benefits and Pitfalls of Jointly Retained Engagements This blog outlines the six important steps to your business valuation engagement with Davis Martindale Advisory Services. You\u2019ve decided to engage a Chartered Business Valuator (\u201cCBV\u201d) to value your business. Perhaps you\u2019re looking to\u00a0sell your business\u00a0and want to get an idea what it may be worth. [...]","protected":false},"author":2,"featured_media":3193,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-3191","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-valuation-blog"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The Process of a Business Valuation \u2013 Engagement by Multiple Parties - Davis Martindale Blog<\/title>\n<meta name=\"description\" content=\"This blog outlines the six important steps to your business valuation joint engagement with Davis Martindale Advisory Services.\" \/>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Process of a Business Valuation \u2013 Engagement by Multiple Parties - Davis Martindale Blog\" \/>\n<meta property=\"og:description\" content=\"This blog outlines the six important steps to your business valuation joint engagement with Davis Martindale Advisory Services.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/stage.tbkdev.com\/dev\/davismartindale.com\/src\/business_valuation_engagement_joint_retainer\/\" \/>\n<meta property=\"og:site_name\" content=\"Davis Martindale\" \/>\n<meta property=\"article:published_time\" content=\"2020-08-18T13:00:06+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-09-17T19:12:41+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/stage.tbkdev.com\/dev\/davismartindale.com\/src\/app\/uploads\/2020\/06\/Engagement-Process-Part-2.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"801\" \/>\n\t<meta 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