Document background
The Valuation Engagement Letter serves as a crucial document in South African professional services, establishing the formal relationship between a valuation service provider and their client. This document is essential when engaging in business valuations, asset valuations, or financial advisory services that require professional valuation expertise. It must comply with South African legislation, including the Companies Act 71 of 2008 and the Financial Advisory and Intermediary Services (FAIS) Act, while adhering to international valuation standards. The letter typically outlines the scope of work, methodology, deliverables, timeline, and fee structure, providing clarity and protection for both parties. It's particularly important in contexts such as mergers and acquisitions, financial reporting, dispute resolution, or regulatory compliance where formal valuation services are required.
