Draft valuation report survey—the results are in!

BVWireIssue #70-3
July 16, 2008

The BVWire posed the question— “What are your thoughts on sending a draft of your expert report on a litigation matter to the attorney with whom you are working?”and you answered.  Here is how your colleagues are treating their draft valuation reports (percentages rounded):

  • I send a draft but place a disclaimer on it that reads “Incomplete Work Product” or something similar – 41%
  • Other (responses here typically included a hybrid of the selectable answers, with most stating that they either (i) send a draft or read/discuss concepts, and (ii) send a draft with numbers blanked out and destroy all copies) – 24%
  • I sometimes send drafts but rarely if ever keep a copy – 18%
  • I never send a draft to an attorney – 12%
  • I always send and retain copies of my drafts – 6%
  • I send a draft but with all numbers pertinent to my valuation blanked out – 0%
  • I will read some or all of the report to the attorney or review it electronically with the attorney – 0%

Here is one of the many comments we received:

I have never thought that business valuation is a solo effort. It is, I believe, the result of the work of many professionals, including the business valuer, in a process that takes a high-resolution still photo (the report or basis for testimony) of a moving train (the business) passing close in front of the valuer. For such an exercise, the perspective of the train's designer (internal business plans, projections and records) and of its engineer and his team (CEO, CFO, COO, CTO, etc.) are likely to be necessary for the valuer to get a clear picture (definition of the interest being valued and standard of valuation used) of the train (clearly written and supported report), at the right moment (valuation date), from the right azimuth (purpose of valuation) and with clearly visible background (contextual perspective).

Have any comments on the results? Send them to BVWire@bvresources.com.

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