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Valuation Engagement Letter Template for England and Wales

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Key Requirements PROMPT example:

Valuation Engagement Letter

"I need a Valuation Engagement Letter for a tech startup valuation in London, with specific provisions for intellectual property valuation and multiple stakeholder review rights, to be completed by March 2025 for a Series B funding round."

Document background
A Valuation Engagement Letter is essential when professional valuation services are required for business transactions, financial reporting, or regulatory compliance. This document, governed by English and Welsh law, sets out the framework for the valuation engagement, including scope, methodology, timelines, and fee arrangements. It ensures compliance with professional standards while protecting both the valuation firm and the client. The letter typically includes detailed information about the nature of the valuation, limitations, assumptions, and any specific requirements or restrictions that may apply to the engagement.
Suggested Sections

1. Engagement Overview: Purpose and scope of the valuation engagement

2. Client Information: Details of the client and any relevant group companies

3. Scope of Services: Detailed description of valuation services to be provided

4. Fees and Payment Terms: Fee structure, payment schedule and expenses

5. Timeline: Key dates and deliverables

6. Professional Standards: Applicable standards and methodology

7. Limitations and Assumptions: Key caveats and assumptions in the valuation

Optional Sections

1. Conflict Disclosure: Required when there are potential conflicts of interest that need to be disclosed to the client

2. Third Party Rights: Defines access and reliance rights for third parties when other parties need to rely on the valuation

3. Specialist Input: Details of other expert input required when additional specialist expertise is needed for the valuation

Suggested Schedules

1. Information Requirements: Detailed list of documents and data needed from the client

2. Team Structure: Key team members and their roles in the valuation engagement

3. Standard Terms: Firm's standard terms of business applicable to the engagement

4. Fee Schedule: Detailed breakdown of fees, charges and payment structure

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
























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Relevant Industries
Relevant Teams
Relevant Roles
Industries

Companies Act 2006: Primary legislation governing company law in the UK, particularly relevant for business valuations and corporate matters

Financial Services and Markets Act 2000: Key legislation regulating financial services activities and markets in the UK

Contracts (Rights of Third Parties) Act 1999: Legislation governing how third parties may enforce terms of a contract

RICS Valuation - Global Standards (Red Book): Professional standards for property valuation, providing mandatory rules and best practice guidance for valuers

International Valuation Standards (IVS): Global standards for valuation practice and professional valuers, ensuring consistency and transparency in valuations

UK General Data Protection Regulation (UK GDPR): Post-Brexit data protection legislation governing how personal data must be handled and protected

Data Protection Act 2018: UK's implementation of data protection standards, working alongside UK GDPR

Money Laundering Regulations 2017: Regulations requiring businesses to implement policies and procedures to prevent money laundering

Proceeds of Crime Act 2002: Legislation dealing with handling proceeds of crime and money laundering offenses

Supply of Services (Implied Terms) Act 1982: Legislation governing implied terms in contracts for services

Unfair Contract Terms Act 1977: Controls the use of exclusion and limitation clauses in contracts

Consumer Rights Act 2015: Legislation protecting consumer rights, applicable if the valuation client is a consumer rather than a business

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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