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Hong Kong Valuation Guide

What information is commonly needed for a business valuation?

A valuer needs enough reliable information to understand what is being valued, how the business creates value and which assumptions are supportable at the valuation date. The request is case-specific: not every item below is needed for every engagement.

Start with information at or near the valuation date

Financial information as of the valuation date is preferred. Audited statements generally provide the strongest starting point, while management accounts are commonly acceptable when audited accounts are unavailable or the valuation date falls between year ends. Clearly label whether information is audited, reviewed, management-prepared, forecast or provisional.

Business scope, ownership and governance

Company profile, history, products and services
Business model, revenue streams, customer groups and routes to market
Hong Kong business registration, Companies Registry records, articles and group structure
Cap table, interest being valued and rights attached to each share class
Shareholders’ agreements, transfer restrictions, pre-emption and other rights
Key management, licences, concentration risks and major dependencies

Historical financial information

Audited financial statements and auditor reports, where available
Management accounts at or close to the valuation date
Monthly, segment or geographic results when seasonality or business units matter
Cash, debt, working-capital and non-operating asset schedules
One-off, owner-related and non-recurring items
Reconciliations between management reports and statutory accounts

Forecasts for income or DCF models

Management-approved budgets and financial projections
Revenue, pricing, volume, customer and market assumptions
Margins, headcount, operating costs and taxes
Capital expenditure, depreciation and working-capital assumptions
Funding needs, debt terms and cash runway
Base, upside and downside cases where uncertainty is material

Forecasts should reflect management’s informed view and be explained—not reverse-engineered to support a desired value.

Asset-heavy and holding businesses

Fixed asset register with description, location and acquisition date
Original cost, accumulated depreciation, carrying amount and capitalisation policy
Invoices, contracts or project records supporting significant costs
Ownership, lease, maintenance, condition and utilisation records
Recent appraisals, insurance values and disposal history
Idle, obsolete, specialised or restricted assets

Key contracts and agreements

Material customer and supplier contracts
Leases, licences, franchises, distribution and agency agreements
Loan, security, preference share, convertible and shareholder-loan terms
Employment, incentive and key-person arrangements
Joint ventures, related-party arrangements, guarantees and indemnities
Litigation, claims, contingent liabilities and termination rights

Prioritise agreements that could materially change cash flows, risk, control or transferability.

Patents, trademarks and other intangibles

Registration documents, legal ownership and renewal status
Countries or territories where rights are protected or used
Products, services and business units using the intangible asset
Revenue, cost savings or licence income associated with it
Licence, royalty, co-development and restriction terms
Remaining economic life, obsolescence, disputes and infringement matters

Startups and early-stage companies

Latest investor presentation, business plan or company profile
Current and fully diluted cap table
Financing history, term sheets and rights attached to each security
Historical results, cash burn, runway and projections
Operational KPIs, pipeline, unit economics and customer traction
Product stage, technology roadmap, market opportunity and competition

Hong Kong and cross-border operations

Functions and transactions among Hong Kong, Mainland and overseas entities
Revenue, costs, assets and funding by currency
Regional forecasts, country risk and material regulatory constraints
Transfer pricing, group charges and shared-resource allocations
Local licences, taxes, cash repatriation and exchange restrictions
Reconciliations across local accounting records and management reporting

Purpose-specific information

Transaction: offers, term sheets, deal structure, due-diligence findings and synergies
Accounting/audit: applicable HKFRS or HKAS requirement, budgets, accounting treatment and auditor expectations
Listed company: announcement, circular, board or independent-adviser timetable and disclosure requirements
Tax: relevant rule, filing purpose and Inland Revenue Department correspondence, with separate tax advice as needed
Dispute: pleadings, instructions, legal assumptions and evidence cut-off
Internal planning: decision question, scenarios and required level of detail

A practical way to organise the data room

Scope

Purpose, valuation date, target interest, intended users, deadline and key contacts.

Core records

Corporate, ownership, financial, forecast, commercial and legal folders with clear dates and version labels.

Questions log

Record information requests, management explanations, source documents and unresolved items.

Send the concise background first

Use the seven-line message format before transferring confidential documents. A valuer can then tailor the detailed request to the actual purpose.

Open the enquiry checklist

Professional references

Prepare a clearer enquiry

Help the valuer understand your case

Use the checklist to summarise the purpose, target, business model, financial scale, valuation date, deadline and expected reviewers.

Open enquiry checklist