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CS Professional · Corporate Restructuring, Valuation and Insolvency · Overview of Business Valuation

Which statement best describes the content expected in a valuer's final report for a corporate restructuring?

A valuer's report should set out the purpose, valuation date, methods adopted, key assumptions, sources of information and the concluded value. A bare figure or calculations without assumptions are insufficient, and recommending how shareholders should vote lies outside the valuer's role.

  1. AIt states the purpose, valuation date, methods used, key assumptions, sources of information and the conclusion on valueCorrect
  2. BIt states only the final value per share
  3. CIt contains the valuer's recommendation on whether shareholders should vote for the scheme
  4. DIt includes only the calculations without any assumptions

Explanation

A proper report is transparent: it records purpose, date, methods, assumptions, information relied upon and limitations, then the conclusion. A bare figure lacks support. Advising how shareholders should vote goes beyond the valuer's role, and omitting assumptions hides the basis.

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