How to Get a Business Valuation: Complete Hiring Guide

Last Updated: Feb 2026

Getting a business valuation requires identifying qualified professionals holding ABV or ASA certifications, verifying credentials through professional directories, requesting detailed proposals outlining scope and fees, reviewing engagement letters specifying deliverables and timelines, providing comprehensive financial documentation, participating in management interviews, and coordinating through draft review to final report delivery. This systematic hiring process typically spans one to two weeks for valuator selection plus four to eight weeks for valuation completion depending on company complexity, information availability, and report requirements. Understanding how to navigate credential verification, proposal evaluation, engagement execution, and process coordination ensures you select qualified professionals delivering defensible conclusions meeting regulatory compliance, transaction support, or strategic planning needs without timeline delays or quality compromises.

Hiring approach matters because business owners unfamiliar with valuation services often make costly selection mistakes including engaging unqualified consultants lacking proper credentials, accepting vague proposals without clear scope definitions, signing engagement letters with unfavorable terms, or failing to verify independence creating conflict issues. These errors result in rejected valuations when IRS agents challenge inadequate gift tax appraisals, excluded expert testimony when courts assess credentials, qualified audit opinions when financial statement support lacks independence, or transaction failures when counterparties discount conclusions from questionable sources. Sofer Advisors with dual ABV and ASA certification, 180+ five-star Google reviews, and Inc. 5000 recognition demonstrates the credential quality and professional standing businesses should seek when hiring valuation professionals.

Where should I start searching for qualified valuators?

Professional credential directories provide the most reliable starting points. The AICPA maintains an online ABV directory at aicpa.org allowing searches by state, city, and specialization. The American Society of Appraisers offers member directories at appraisers.org filtering by credential type, location, and industry expertise. These directories guarantee credential verification-listed professionals hold active certifications meeting continuing education requirements.

State CPA society directories list members with valuation practices. However, CPA licensure alone doesn’t qualify someone for business valuation. Verify ABV or ASA credentials separately. Some CPAs offer valuation services without proper certification creating credential gaps.

Attorney and accountant referrals provide trusted recommendations. Business attorneys handling M&A transactions, estate planning, or litigation regularly work with valuators. CPAs preparing financial statements or advising on transactions know qualified professionals. However, verify credentials independently-referrals sometimes involve reciprocal relationships rather than quality assessment.

Professional associations maintain specialist lists. Industry groups like Healthcare Financial Management Association or technology councils connect members with sector-focused valuators. However, association membership doesn’t guarantee valuation credentials. Always verify ABV or ASA certification.

Online searches beginning with “business valuation [your state]” or “ABV valuator [your city]” identify local professionals. Review websites for credential claims, industry experience, and client testimonials. Verify claimed credentials through issuing organizations before proceeding.

LinkedIn searches allow reviewing professional backgrounds. Search “ABV ASA business valuation” plus location filters. Review profiles for education, credentials, and experience descriptions. LinkedIn provides preliminary screening but verify credentials through official directories.

The following search strategy maximizes success:

Initial Identification (Days 1-2):

1. Search AICPA ABV directory by state
2. Review ASA member listings
3. Request attorney/accountant referrals
4. Search relevant industry associations
5. Compile list of 5-7 potential valuators

Credential Verification (Days 2-3):

1. Verify ABV status through AICPA
2. Confirm ASA credentials through ASA
3. Check state CPA license status
4. Review online presence and testimonials
5. Narrow to 3-4 qualified candidates

Initial Contact (Days 3-5):

1. Email or call requesting information
2. Describe valuation purpose and timing
3. Request fee estimates and timelines
4. Schedule brief consultation calls
5. Assess responsiveness and professionalism

How do I evaluate proposals and select the right valuator?

Credential comparison comes first. Prioritize professionals holding both ABV and ASA certifications demonstrating comprehensive training. Single-credential holders (ABV only or ASA only) meet minimum standards. However, dual certification signals commitment exceeding baseline requirements. Reject proposals from consultants lacking ABV or ASA credentials regardless of other qualifications.

Experience assessment examines industry specialization and engagement volume. Ask how many valuations they’ve completed in your industry within 24 months. Request examples of similar engagements. Generalists claiming expertise across all industries may lack deep sector knowledge. Specialists completing 20+ annual valuations in your industry bring pattern recognition generalists cannot match.

Proposal comprehensiveness reveals professional sophistication. Detailed proposals specify valuation standard (fair market value versus fair value), methodology approach, report type, deliverable timeline, information requirements, and fee structure. Vague proposals lacking scope clarity create mid-engagement disputes. Comprehensive proposals demonstrate process understanding and client service commitment.

Fee structure transparency prevents surprise charges. Fixed-fee proposals provide cost certainty. Hourly billing creates uncertainty but may save costs for simple engagements. Understand what triggers additional fees-scope changes, additional analysis requests, or rush timelines. Standard business valuations range $7,500-$25,000 depending on complexity.

Timeline commitments demonstrate project management capability. Specific milestone dates-information request within X days, draft report by week Y, final delivery by week Z-show organized processes. Vague timeline estimates suggest poor project planning. However, timeline achievement requires your information provision cooperation. Delays providing documentation proportionally extend completion.

Independence verification addresses conflict concerns. Valuators earning commissions based on conclusions or subsequent transactions face objectivity conflicts. Professional standards prohibit contingent fees. Ask directly: “Do you earn commissions or have financial interests affected by valuation conclusions?” Ethical professionals maintain independence.

What should engagement letters include and what terms matter?

Scope definition clarity prevents mid-engagement disputes. Engagement letters should specify exactly what entity or entities receive valuation, the valuation date, the valuation standard (fair market value, fair value, investment value), and the intended purpose. Different purposes require different approaches-gift tax valuations differ from divorce valuations.

Deliverable specifications outline report type and content. Detailed valuation reports include comprehensive methodology documentation spanning 30-100+ pages. Summary reports condense content while maintaining analytical rigor. Calculation reports provide limited procedures. Ensure proposed report type matches your purpose-courts and regulatory agencies typically require detailed reports.

Fee terms establish total costs and payment schedules. Fixed fees provide certainty. Retainer plus hourly arrangements may offer flexibility. Understand payment timing-upon engagement, upon draft delivery, or upon final report. Clarify what circumstances trigger additional fees preventing surprise charges.

Timeline commitments specify milestone dates. Professional engagement letters include information request delivery dates, draft report target dates, and final delivery schedules. Build in adequate time for your review and revision incorporation. Rush timelines carry 25-50% premium fees.

Revision policies prevent cost surprises. Most engagements include one revision round for factual corrections or clarifications. Additional revisions for scope changes or alternative scenarios may incur fees. Clarify revision terms upfront.

Limitation of liability provisions protect both parties. Valuators limit liability to engagement fees or specified multiples. These provisions reflect professional standards and insurance coverage. However, limitations shouldn’t excuse negligence or professional misconduct.

Confidentiality protections safeguard sensitive information. Engagement letters prohibit disclosure except as required by law or professional standards. Sofer Advisors maintains strict confidentiality protocols and provides secure file sharing ensuring information protection.

Termination provisions allow ending engagements if relationships prove unworkable. Understand termination notice requirements and fee obligations for partially completed work.

How do I prepare and what red flags should I avoid?

Preparation Steps:

Document organization before engagement accelerates timelines. Compile 3-5 years of financial statements, tax returns, organizational documents, and operational data. Having comprehensive packages ready enables immediate provision.

Single point of contact designation streamlines communication. Identify one person with financial knowledge coordinating information requests and answering questions.

Management availability commitment ensures interview scheduling doesn’t create bottlenecks. Interviews require 2-4 hours total. Block calendar time within engagement weeks.

Draft review prioritization enables timely completion. Draft reports arrive weeks 6-7. Schedule review meetings within days of receipt.

Critical Red Flags:

Credential absence represents the most serious red flag. Never engage valuators lacking ABV or ASA certification. Regulatory agencies and courts reject work from unqualified appraisers.

Guaranteed conclusion promises violate professional standards. Ethical valuators cannot predetermine conclusions before analysis.

Unusually low fees signal inadequate scope. Quotes significantly below $7,500 suggest corner-cutting.

Commission-based compensation creates conflicts. Professional standards prohibit contingent fees based on conclusions.

Poor communication responsiveness predicts engagement problems. Slow responses during hiring suggest poor project management.

How much should I expect to pay and what affects costs?

Standard business valuation costs range $7,500-$25,000 depending on company size, complexity, industry, and report requirements. Simple service businesses with straightforward operations cost less than complex manufacturers with multiple locations. Healthcare practice valuations typically run $10,000-$30,000 due to regulatory complexity and specialized analysis requirements.

409A valuations for startups range $2,500-$9,000 depending on company stage and capital structure complexity. These focused engagements analyze common stock value for equity compensation compliance requiring less comprehensive scope than full business valuations.

Purchase price allocations under ASC 805 span $15,000-$50,000 based on acquired asset complexity. Simple service company acquisitions complete at lower ranges. Technology acquisitions requiring customer relationship, developed technology, and tradename valuations reach higher ranges.

Update valuations refreshing prior analyses cost 50-70% of original engagement fees. Companies maintaining regular update relationships for buy-sell agreements or estate planning benefit from update pricing leveraging previous analytical work.

Rush timeline premiums add 25-50% to standard fees. Two to three week completions require priority resource allocation and extended hours. However, rush timelines require immediate complete information availability. Companies cannot compress timelines while delaying information provision.

Complexity factors increasing costs include multiple locations, complex capital structures, significant intangible assets, regulatory compliance requirements, and litigation support needs. International operations, unusual ownership arrangements, or specialized industry characteristics require additional analytical effort.

Geographic location affects pricing minimally. Major metro area firms charge premium rates but credential quality matters more than location. Remote engagement capability eliminates geographic pricing advantages. Focus on credential quality and experience rather than location-based cost shopping.

The following table summarizes typical ranges:

Frequently Asked Questions

How long does the hiring process take before the valuation starts?

Hiring typically requires one to two weeks from initial search through engagement letter execution. Credential verification and proposal requests take 2-3 days. Proposal evaluation and reference checking require 3-4 days. Engagement letter review and negotiation need 2-3 days. However, you can accelerate by contacting multiple valuators simultaneously and making quick decisions once receiving proposals. Avoid rushing credential verification-proper vetting prevents selecting unqualified professionals. Once engagement letters execute, valuation work begins immediately with information requests typically arriving within one business day.

Can I negotiate valuation fees?

Limited negotiation occurs for standard engagements. Valuators price based on anticipated scope and effort. Extremely aggressive negotiation may signal unrealistic cost expectations or misunderstanding valuation complexity. However, you can discuss scope adjustments reducing costs-summary reports versus detailed reports, simplified analysis for internal planning versus comprehensive regulatory compliance documentation. Discuss whether your situation truly requires full scope or whether abbreviated approaches suffice. Payment terms sometimes negotiate more readily than total fees. Never sacrifice credential quality for cost savings-unqualified inexpensive valuations prove more costly through rejected conclusions.

Should I hire locally or can I work with remote valuators?

Credential quality and industry experience matter more than geographic proximity. Modern technology enables effective remote engagement through video conferences and secure file sharing. Sofer Advisors serves clients nationally through efficient virtual processes. However, certain situations benefit from local knowledge-restaurant valuations requiring local market understanding, healthcare practices navigating state-specific regulations, or litigation requiring local court admission. Discuss whether your specific circumstances benefit from local expertise or whether national practitioners deliver equivalent quality. Never prioritize location over credentials-credentialed remote professionals exceed non-credentialed local consultants.

What happens if I’m unhappy with the valuator I hired?

Address concerns directly first. Many disagreements resolve through better communication or methodology clarification. Professional valuators explain analytical choices and address reasonable questions. However, if fundamental relationship breakdowns occur, review engagement letter termination provisions. Termination typically requires notice and payment for work completed. Starting over with new valuators incurs additional costs and timeline delays. Prevent this through thorough initial vetting-verify credentials, check references, review sample reports, and assess communication quality before engaging. Second opinions provide validation but cost significantly more than single comprehensive engagements.

Do I need different valuators for different purposes?

One valuator often serves multiple purposes if properly credentialed and independent. A single fair market value valuation may support gift tax planning, estate planning, and buy-sell agreement funding simultaneously. However, some situations require different professionals-your transaction advisor valuator may face independence conflicts for subsequent financial statement audits. Litigation valuations need specific expert testimony experience. Discuss intended uses at engagement ensuring one report serves all purposes or understanding when separate engagements prove necessary. Multiple purposes sometimes reduce per-purpose costs through shared analytical effort.

How do I verify a valuator’s credentials are current and valid?

Verify through credential-granting organizations directly. The AICPA provides ABV credential verification at aicpa.org/membership. The ASA offers member verification at appraisers.org. State CPA boards verify CPA licenses at respective state board websites. Don’t rely solely on website claims or provided certificates-credential holders pay annual dues and complete continuing education maintaining active status. Lapsed credentials signal potential quality issues. Verify before engaging and occasionally verify again if maintaining long-term relationships. Professional directories update regularly reflecting current status.

Can my current CPA or attorney provide the valuation?

CPAs holding ABV certification can provide valuations if maintaining independence. However, CPAs preparing your tax returns may face independence conflicts for certain purposes including financial reporting or litigation. Attorneys rarely hold valuation credentials. Legal expertise doesn’t qualify for business valuation-courts require valuation-specific credentials. Some law firms employ credentialed valuators but verify credentials independently. Discuss independence requirements with your professional advisors before assuming existing relationships can provide valuation services. Sometimes independence concerns necessitate engaging separate valuation specialists.

What if the proposed timeline doesn’t work for my deadline?

Communicate deadline urgency immediately. Valuators may accommodate rush requests through priority scheduling and extended hours. However, rush service carries premium fees and requires immediate complete information provision. Unrealistic deadlines may prove impossible regardless of urgency or fees-four to eight weeks represents standard duration for analytical rigor. If hard deadlines approach, consider whether preliminary estimates suffice until comprehensive valuations complete. Some situations accept phased deliverables-preliminary conclusions supporting immediate needs followed by comprehensive documentation. Discuss creative solutions balancing timeline, cost, and quality constraints.

Should I hire the cheapest qualified valuator I find?

No-balance cost against quality indicators. Extremely low fees may indicate inexperience, inadequate scope, or poor understanding of requirements. However, highest fees don’t guarantee best quality. Evaluate total value-credentials, experience, responsiveness, proposal quality, and reference feedback-against reasonable pricing. Within normal fee ranges, slight cost differences matter less than credential quality and engagement fit. A $12,000 valuation from highly credentialed experienced professionals proves better value than $8,000 from marginally qualified consultants if IRS challenges or court scrutiny occurs. Consider downstream costs of inadequate valuations exceeding initial fee savings.

How involved will I need to be throughout the engagement?

Expect meaningful involvement at specific milestones requiring 10-15 total hours. Initial consultation requires 1-2 hours. Information gathering and organization consume 3-5 hours. Management interviews last 2-4 hours. Draft review meetings take 1-2 hours. Between milestones, expect periodic brief communications answering clarification questions. However, single point of contact designation reduces individual time requirements. Well-organized companies with responsive accountants minimize involvement. Those lacking organized records or requiring document reconstruction need more time. Discuss time commitment expectations during proposal evaluation ensuring alignment with availability.

Conclusion

Getting a business valuation successfully requires systematic credential verification, thorough proposal evaluation, careful engagement letter review, and effective process coordination. Starting with professional directories ensures qualified candidates, comparing credentials and experience identifies best fits, and clear communication throughout engagements delivers quality outcomes meeting regulatory, transaction, or strategic needs.

Schedule a consultation to discuss your business valuation needs and receive a detailed proposal outlining our credentials, relevant experience, and engagement approach tailored to your specific situation.

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About the Author

This guide was prepared by David Hern CPA ABV ASA, founder of Sofer Advisors — a business valuation firm headquartered in Atlanta, GA serving clients across the United States. David holds dual accreditations as an Accredited Senior Appraiser (ASA) and is Accredited in Business Valuation (ABV), credentials recognized by the IRS, SEC, and FINRA. He also holds the Certified Exit Planning Advisor (CEPA) designation. With 15+ years of valuation experience, David has served as an expert witness in 11+ cases across multiple jurisdictions and built Sofer Advisors into an Inc. 5000-recognized firm with 180+ five-star Google reviews. The firm’s full W2 employee team maintains subscriptions to all major valuation databases and operates under a next business day response policy.

For professional business valuation services, visit soferadvisors.com or schedule a consultation.

This article provides general information for educational purposes only and does not constitute legal, tax, financial, or professional advice-consult qualified professionals regarding your specific circumstances.