BUSINESS VALUATION SERVICES

Business valuation services are a viable source of additional revenue for CPA firms. Not only are CPAs well positioned to make inroads into this largely unregulated niche, but the market is rapidly expanding. However, CPAs should only accept engagements that involve an acceptable degree of risk, taking into consideration the nature of the business to be valued and the extent and reliability of the information upon which the valuation will be based. Evaluators should employ a well-crafted engagement letter to minimize the risk of client litigation and include caveats in the final report that call attention to its limitations. CPAs should also observe the ethical requirements of the accounting profession in whatever jurisdiction they offer the services.