By Bill Anderson, FCCA, Chief Executive Officer, Assetica — 2026-07-31
Anyone can produce a number. What a bank, a buyer, a court or the tax authority actually relies on is a number produced by someone with nothing to gain from where it lands. Independence is not a marketing phrase; it is a specific, checkable set of facts about fees, relationships and methodology. Here is exactly what to check before you engage a firm to value your business.
An independent valuer is paid a fixed or time-based fee with no link to the resulting figure, has no audit or brokerage relationship with the company being valued, discloses any prior relationships in the report, and forms its own view rather than adopting the instructing party's preferred conclusion.
Auditing and valuing the same set of accounts creates a self-review conflict. Banks, buyers and courts routinely discount or reject a valuation from a company's own auditor, regardless of whether the figure itself was calculated correctly.
A broker selling the business is typically paid a commission on the sale price, creating a direct financial incentive toward a higher headline figure, which is why sophisticated buyers commission their own independent valuation rather than relying on the seller's broker.
Look for adherence to International Valuation Standards (IVS) and the RICS Red Book or a recognised local equivalent, professional body membership such as FCCA, ACA or CFA, and in Saudi Arabia, Taqeem accreditation, which is mandatory for anyone providing valuation services in the Kingdom.
A fee quoted as a percentage of the valuation figure, or any pressure to reach a predetermined number, are the strongest signals that a firm is not operating independently, regardless of how professional the rest of the pitch sounds.
What makes a business valuation firm genuinely independent?
A fixed or time-based fee with no link to the resulting figure, no audit or brokerage relationship with the company being valued, disclosure of any prior relationships, and a methodology the firm forms its own view on rather than adopting the instructing party's preferred conclusion.
Can my company's own auditor provide the business valuation?
This is generally discouraged and often rejected by banks, buyers and courts, because auditing and valuing the same set of accounts creates a self-review conflict, even where the figure itself is technically correct.
Is a valuation from the broker selling my business independent?
No. A broker is typically paid a commission on the sale price, creating a direct incentive toward a higher headline figure, which is why buyers routinely commission their own independent valuation instead.
What is the difference between IVS and the RICS Red Book?
IVS is the global framework for bases of value and methodology, published by the International Valuation Standards Council. The RICS Red Book Global Standards incorporate IVS and add further reporting, conduct and independence requirements.
Is business valuation a licensed profession everywhere?
No. In Saudi Arabia it is formally regulated and requires Taqeem accreditation. In the UAE, UK, Europe and Australia, professional body membership and adherence to IVS are the primary markers of standing rather than a single government licence.
What is the biggest red flag when choosing a valuation firm?
A fee quoted as a percentage of the valuation figure, or any pressure to reach a predetermined number, are the clearest signals the firm is not operating independently.