Start with purpose and risk
The same company may require different work for a transaction, accounting, shareholder dispute, financing, tax or internal decision. Identify the intended users, reviewers, disclosure level, timing pressure and consequences of a poorly supported conclusion before deciding what type of valuation firm you need.
Relevant experience
Ask about similar purposes, industries, business models, instruments, assets and reviewer expectations. Experience with a simple services company does not automatically transfer to a regulated financial institution or multinational group.
Who is actually doing the work?
Clarify the responsible professional, day-to-day team, senior review, outsourcing and degree of automation. Meet the person who will lead an important engagement.
Professional and accounting background
Credentials can evidence capability but do not replace relevant experience. For accounting or HKFRS work, strong accounting knowledge or a qualified accountant on the team can materially improve auditor communication.
Scope clarity
A good proposal states the subject interest, purpose, valuation date, contemplated methods, deliverable, timetable, fee assumptions, exclusions and post-delivery support.
Ability to explain judgement
The valuer should explain why a method fits, how assumptions were selected, what evidence was used and which variables matter most.
Independence and conflicts
Understand relationships with transaction parties, contingent fees, advocacy roles and whether other services could impair objectivity or the appearance of independence.
Data security and AI
Ask about storage, access, outsourcing, AI tools, model training and audit trails. Confidential information should not be entered into public tools without appropriate controls.
Review and question support
Confirm who will handle questions from auditors, HKEX advisers, boards, lenders, legal teams or regulators, and how many update rounds the fee includes.
Private, listed, financial and multinational cases
| Context | What to emphasise when selecting the valuer |
|---|---|
| Private company | Information may be less standardised, shares are illiquid, and owner-related adjustments and shareholder rights can be significant. |
| Hong Kong listed company | Market prices provide evidence, but announcements, circulars, governance, auditors, independent advisers and HKEX review can increase documentation and timing demands. |
| Financial institution, fund or fintech | Sector knowledge may be needed for regulatory capital, credit risk, assets under management, instruments, valuation policies, model governance and independent review. |
| Hong Kong group with Mainland or multinational exposure | Country risk, currency, tax, transfer pricing, local market data, group allocations and cross-border information consistency become important. |
When two quotations are far apart
A fee gap often means that the firms have interpreted scope, complexity, senior involvement, source research, sensitivities, reviewer support or professional risk differently. Compare deliverables and assumptions—not only the total fee.
Different valuation-firm business models
Valuation is also a commercial market. Some firms compete mainly on price. Some standardise workflows so general staff can handle more work with systems and AI. Others insist on close involvement by senior finance or accounting professionals even when it costs more. Choose according to the judgement, personal attention, speed and defensibility your case requires.
Should you ask for a template report?
It is reasonable to ask about typical structure and contents, but client reports are confidential and every business and purpose differs. A generic or AI-generated template proves little about the final analysis. More useful evidence includes the engagement leader’s explanation of process, an anonymised table of contents where appropriate, professional background and examples of relevant technical issues handled.
Suggested interview questions
- Which assignments have you handled with a similar purpose and industry?
- Who will model, review and sign, and how much senior time is actually included?
- Which methods are currently contemplated, and what are the main data or judgement risks?
- How will you support auditor, HKEX-adviser or other reviewer questions?
- What is included in the fee, how many update rounds are allowed and what is excluded?
- How do you manage conflicts, confidential data, outsourcing and AI use?