What to do if financials are incomplete

Document precisely what is missing and why. Provide the best available estimates, obtain bank statements or tax transcripts where possible, and disclose limitations in the report to reduce dispute risk and maintain professional standards.

Are electronic signatures acceptable for valuation reports

Yes for most commercial uses under the ESIGN Act (15 U.S.C. ch. 96) and UETA where adopted. Keep a consent record and audit trail; exceptions like wills and certain court filings may not accept e-signatures.

Who is an authorized signatory for this document

An authorized corporate officer, a certified valuation professional, or a designated representative may sign. If a delegate signs, include a corporate resolution or power of attorney to verify signer authority.

Does the valuation report require notarization or witnesses

Generally, notarization is not required for valuation reports. Specific lenders, courts, or jurisdictions might request notarized affidavits; follow state RON rules or in-person notary procedures if requested.

How to correct or amend a signed valuation document

Create a written amendment or restatement referencing the original report and valuation date. Obtain re-signatures from original signers and retain both versions for auditability and evidentiary continuity.

What evidence improves legal defensibility of the valuation

Retain source documents, workpapers, communications, and third-party data. A clear chain of custody, complete audit trail of signatures, and professional certifications strengthen admissibility in tax, regulatory, or litigation settings.

Electronic Signature
Templates
Miscellaneous
Business Valuation Document

Business Valuation Document

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

BUSINESS VALUATION AGREEMENT

This Business Valuation Agreement (the Agreement) is entered into as of between:

Client Name: Client Address: Valuation Firm Name: Valuation Firm Address:

RECITALS

WHEREAS, the Client desires a formal valuation of the business identified below for the specific purpose described herein; and

WHEREAS, the Valuation Firm is duly qualified and agrees to perform an independent valuation in accordance with the terms and standards set forth in this Agreement; and

WHEREAS, the parties intend that the valuation deliverable shall be subject to the limitations, assumptions and certifications contained in this Agreement.

SUBJECT BUSINESS & PURPOSE

Subject Business Name: Business Location: Valuation Date (as of): Purpose of Valuation:

SCOPE OF WORK

The Valuation Firm shall perform a valuation engagement that includes, at minimum, the following tasks and deliverables. The scope may be limited by the assumptions and access described below.

Scope Details and Deliverables:

Deliverables will include a written valuation report that describes the valuation approaches applied, key assumptions, sensitivity analysis and the concluded indication(s) of value.

VALUATION METHODOLOGIES

The parties acknowledge the following methodologies may be considered. The Valuation Firm will select applicable methods and document the rationale.

Income Approach Market (Comparable) Approach Asset-Based Approach Other:

PAYMENT TERMS

In consideration for the services, Client shall pay the Valuation Firm fees as set forth below. Payment obligations survive termination with respect to work performed prior to termination.

Total Fee Amount: Payment Schedule / Milestones: Late Payment Fee:

TERM AND TERMINATION

This Agreement commences on the Effective Date and continues until completion of the services or unless earlier terminated as provided herein.

Start Date: Estimated End Date: Termination Notice Period (days):

Either party may terminate for material breach if the breaching party fails to cure within the notice period. Upon termination, Client shall pay for all work performed and reimbursable expenses through the termination date.

CONFIDENTIALITY

The parties acknowledge that the Valuation Firm may receive confidential and proprietary information. The Valuation Firm shall hold such information in confidence and not disclose it except to employees, consultants or advisors who have a need to know and who are bound by confidentiality obligations no less protective than those in this Agreement.

Exceptions to Confidentiality (if any):

The Valuation Firm may disclose confidential information where required by law or a valid legal process, provided the Firm gives Client prompt notice to allow Client to seek protective relief.

LIMITATION OF LIABILITY

The Firm's liability to the Client for any claim arising under this Agreement shall be limited to direct damages and capped at the total fees paid under this Agreement. In no event shall the Firm be liable for consequential, incidental, punitive or special damages, except to the extent prohibited by applicable law. Client acknowledges that valuation conclusions are opinions and not guarantees of value.

GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the state of without regard to principles of conflict of laws. Venue for disputes shall be in the courts of that state unless the parties agree otherwise in writing.

CERTIFICATIONS AND ASSUMPTIONS

The Client certifies that all financial information and representations provided to the Valuation Firm are true, complete and provided in good faith. The Valuation Firm's conclusions are expressly conditioned on the accuracy of such information and on the business continuing in its present form unless otherwise stated in the report.

Material Assumptions or Qualifications:

ENTIRE AGREEMENT

This Agreement, including any schedules, exhibits and the valuation engagement letter attached or incorporated herein, constitutes the entire agreement between the parties with respect to the subject matter and supersedes all prior and contemporaneous agreements and understandings, whether written or oral. Any amendment or waiver must be in writing and signed by both parties.

NOTICES

All notices required or permitted by this Agreement shall be in writing and delivered to the addresses set forth above or to such other address as a party may designate by written notice to the other.

Client Printed Name:

By:

Date:

Valuation Firm Printed Name:

By:

Date:

What the Business Valuation Document Is

The Business Valuation Document is a structured report that estimates a company's economic value at a specific point in time. It combines financial statement analysis, chosen valuation approaches (income, market, or asset), and adjustments for nonrecurring items. Prepared by valuation analysts, CPAs, or certified appraisers, the document supports M&A, financing, tax reporting, shareholder transactions, estate planning, and litigation. It includes an executive summary, reconciled calculations, assumptions, and supporting exhibits so third parties can reproduce or challenge the conclusions during due diligence or regulatory review.

Why a Formal Valuation Document Matters

A formal Business Valuation Document provides an independently reasoned estimate of value, documents assumptions and data sources, and supports consistent decision-making for pricing, tax, or dispute resolution.

Who Typically Prepares and Uses This Document

Management, buyers, lenders, tax advisors, and legal counsel commonly request or prepare Business Valuation Documents for decision-making and compliance.

Private company owners and executives — use valuations for exit planning and ownership transfers.
Lenders and underwriters — evaluate creditworthiness and collateral value during funding decisions.
Attorneys and tax advisors — support litigation, estate tax, and IRS reporting needs.

Accurate, well-documented reports reduce dispute risk, speed negotiations, and help satisfy regulatory, tax, and financing requirements.

Core Components to Include in Every Valuation Document

A professional Business Valuation Document organizes analysis and evidence so readers can follow assumptions, calculations, and the conclusion of value with clarity and reproducibility.

Executive Summary

Concise statement of value, valuation date, and conclusion of value. Summarize primary drivers, material adjustments, and the intended use to orient readers quickly.

Financial Analysis

Detailed review of historical results, normalized earnings, cash flow adjustments, and trend analysis with reconciliations to tax returns and audited statements where available.

Valuation Methods

Describe and apply income, market, and asset approaches with calculations, multiples applied, discount rate derivation, and sensitivity ranges to show method convergence.

Assumptions

List key assumptions on growth, margins, capital expenditures, and macroeconomic inputs. Clearly state sources and the rationale for each assumption.

Supporting Exhibits

Include schedules, comparable company data, transaction multiples, and signed workpapers. Exhibits provide the evidentiary backbone for the valuation conclusions.

Certification

Statement of preparer qualifications, scope limitations, and a signed attestation about independence and that the report follows recognized valuation standards.

Step-by-Step: Completing a Business Valuation Document

Follow these sequential steps to complete the Business Valuation Document accurately and consistently for internal or external use.

01

Gather Documents: Collect three years of financials, tax returns, and supporting schedules.
02

Select Method: Choose income, market, or asset approach and document rationale.
03

Calculate Value: Apply multiples, discount rates, and adjustments; reconcile results.
04

Review & Sign: Have a qualified reviewer verify assumptions and authorized signers execute.

How Digital Submission and Signing Work

Digital preparation and delivery streamline review cycles: upload documents, configure fields, route to signers, and archive the executed report with audit details.

Upload Files: Attach PDFs, Word files, or Excel schedules.
Place Fields: Add signature, date, and checkbox fields.
Authenticate Signers: Use email, SMS code, or advanced authentication.
Store & Audit: Save final PDF with a detailed audit trail.

Recommended E‑submission Workflow Settings

Set up an e-submission workflow to enforce order, authentication, and retention policies for the Business Valuation Document.

Field	Configuration
Authentication Method	Email link, SMS code; optional KBA for high-assurance.
Field Types	Signature, initials, date, text, numeric, and checkbox fields.
Routing Order	Sequential or parallel signer routing with conditional branching.
Audit Trail	Enable complete timestamps, IP, and download logs.

Technical and Integration Considerations

Ensure the platform supports required integrations, authentication methods, and file formats before eSubmitting a Business Valuation Document.

Integrations: Salesforce, NetSuite, Google Workspace support.
File Formats: PDF, DOCX, XLSX supported.
Device Support: Desktop and mobile-compatible signing.

Typical Timelines and Delivery Expectations

Typical timelines and dates to expect when commissioning, reviewing, and using a Business Valuation Document in transactions and compliance contexts.

Valuation effective date entry:

Enter MM/DD/YYYY; defines comparables and discounting.

Delivery for due diligence:

Standard turnaround 7–21 business days depending on complexity.

Bank or lender review window:

Lenders often request 10–30 days for internal review.

Tax filing relevance:

Retain copies for IRS audit and reporting periods.

Post-closing updates:

Update if material events occur before closing.

Key Project Milestones for a Valuation Engagement

Key milestones map the valuation workflow from data collection through final sign-off and archival, allowing teams to manage expectations.

01

Stage 1: Preparation

Collect financials and engagement letters; clarify scope and assumptions.

02

Stage 2: Analysis

Apply valuation models and compute sensitivity ranges.

03

Stage 3: Review

Internal and external reviewers verify assumptions and calculations.

04

Stage 4: Finalization

Obtain signatures, notarizations if required, and distribute executed copies.

How a Formal Valuation Compares to an Internal Memo

A side-by-side comparison helps clarify intended use, depth, and signatory expectations between a formal valuation report and an internal memo.

Criteria	Full Valuation	Internal Memo
Purpose	transaction support	internal planning
Level of detail	high	moderate
Signatory	valuation professional	finance lead
Typical use	m&a, tax, litigation	budgeting, forecasts

eSignature Vendor Pricing for Executing Valuation Documents

Comparison of common eSignature vendors and core plan pricing relevant to preparing and executing a Business Valuation Document.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial	Varies by vendor	Varies by vendor	Varies by vendor	Varies by vendor
Bulk Send	Yes	Yes	Yes	Yes	Yes
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No
Envelope Cap	No cap	100 envelopes/user/year	Varies by plan	Varies by plan	Varies by plan

Common Pitfalls That Reduce Reliability

Incomplete or unaudited financial records obscure recurring earnings and force reliance on estimates, which reduces valuation reliability and increases the chance of lender or buyer pushback.
Using inconsistent valuation methods or undisclosed adjustments leads to conflicting results and undermines comparability across transactions or periods, complicating negotiation and due diligence.
Failure to document assumptions, sources, and calculation steps hampers reproducibility and invites challenges in tax audits or litigation, potentially exposing preparers to professional liability.
Unclear signer authority or missing corporate resolutions can invalidate executions and delay closings, especially when third parties require evidence of authorization.

Security, Compliance, and Technical Controls to Expect

Encryption: AES-256 at rest, TLS 1.2/1.3

Audit Trail: Complete timestamps, IP, and action history

Access Controls: Role-based access and SSO support

HIPAA Compliance: BAA available for protected health information

21 CFR Part 11: Supports FDA recordkeeping and signatures

Certifications: SOC 2 Type II and ISO 27001

Consequences of an Incorrect or Incomplete Valuation

Tax reporting risk: May trigger IRS penalties

Litigation exposure: Elevated dispute and litigation costs

Regulatory scrutiny: Regulatory challenges for misstated valuations

Financing delays: Loan offers may be rescinded

Contractual breach: Warranty claims or indemnity triggers

Reputational harm: Loss of stakeholder trust

Frequently Asked Questions About the Business Valuation Document

Answers to common questions about completing, authenticating, and updating a Business Valuation Document for transactional, tax, and legal purposes.

Need help? Contact support

What to do if financials are incomplete
Document precisely what is missing and why. Provide the best available estimates, obtain bank statements or tax transcripts where possible, and disclose limitations in the report to reduce dispute risk and maintain professional standards.
Are electronic signatures acceptable for valuation reports
Yes for most commercial uses under the ESIGN Act (15 U.S.C. ch. 96) and UETA where adopted. Keep a consent record and audit trail; exceptions like wills and certain court filings may not accept e-signatures.
Who is an authorized signatory for this document
An authorized corporate officer, a certified valuation professional, or a designated representative may sign. If a delegate signs, include a corporate resolution or power of attorney to verify signer authority.
Does the valuation report require notarization or witnesses
Generally, notarization is not required for valuation reports. Specific lenders, courts, or jurisdictions might request notarized affidavits; follow state RON rules or in-person notary procedures if requested.
How to correct or amend a signed valuation document
Create a written amendment or restatement referencing the original report and valuation date. Obtain re-signatures from original signers and retain both versions for auditability and evidentiary continuity.
What evidence improves legal defensibility of the valuation
Retain source documents, workpapers, communications, and third-party data. A clear chain of custody, complete audit trail of signatures, and professional certifications strengthen admissibility in tax, regulatory, or litigation settings.

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