Valuations can be complex. Many financial, market, and operational variables must be considered to produce an accurate value for your business. That's why putting together the right advisory team is critical. This team plays a vital role in helping you understand the true worth of your business. The right team can even uncover hidden opportunities and help you make better business decisions that drive growth. 

Building the right team isn't about having good financial experts on board. It’s about assembling a group of specialists with the experience and industry knowledge needed to create a comprehensive and accurate valuation.   

Who Should Be on Your Advisory Team?

A well-rounded valuation advisory team consists of specialized professionals with distinct skills. Having an advisory team with diverse backgrounds ensures a comprehensive and accurate business valuation. Here are some of the key roles you should think about filling. 

Valuation Specialist

Valuation specialists are a central part of any valuation team. They lead the process and have deep knowledge of financial analysis, market trends, and valuation methodologies. Their role is to determine your company’s worth by assessing assets, income streams, and growth potential. Essentially, they synthesize relevant financial data with industry benchmarks and economic conditions to create a precise valuation. 

Financial Analysts

Financial analysts support the valuation process by interpreting vast amounts of financial data like balance sheets and cash flow reports. Their analysis identifies key growth patterns and operational efficiencies that impact your company’s value. 

Legal Advisor

Valuations often have legal and regulatory implications. Legal advisors ensure the valuation adheres to any applicable laws and regulations. They also help manage contracts and provide insight into any compliance issues. Overall, they ensure that all legal issues, such as ownership structures, intellectual property, and liability risks, are considered. 

Industry Expert

An industry expert brings an in-depth understanding of your business’s industry to the table. They understand how your specific market, competition, and customer behavior affect the overall value of your business. They provide the context that helps your valuation team account for industry-specific variables. 

Tax Advisor

Like most things, valuations come with tax implications. A tax advisor assesses the tax structure of the business, evaluates potential liabilities, and identifies strategies to minimize tax burdens. They also help evaluate how current and future tax obligations impact your company’s value. 

Risk Management Professional

Risk management is essential in determining your company’s stability and future performance. A risk management professional identifies these risks and helps mitigate them through strategies that enhance your company’s value. 

Building a Well-Rounded Team

A well-rounded team requires cross-functional expertise. Cross-functional teams incorporate diverse skill sets, providing a comprehensive approach to problem-solving. This diversity encourages innovation and allows the team to anticipate any potential issues. 

Technical expertise is a must-have for valuation teams, but without an understanding of industry-specific trends and challenges, that expertise is limited. Striking a balance between technical skills and industry insight is critical. A valuation team should always align their technical expertise within a broader business context. This ensures that solutions are relevant and actionable. 

Communication is what holds a cross-functional team of experts together. Differences in professional language or priorities can create barriers between team members. Establishing clear communication channels and a common language keeps everyone on your team aligned. Tools like project management software or regular meetings help break down any communication silos, helping to foster collaboration. 

Building your valuation advisory team is critical to an accurate and reliable business valuation. With the right combination of professionals, your team will have a well-rounded perspective that delivers strategic value. An experienced valuation advisory team helps you navigate the valuation process with confidence. By carefully selecting a team that aligns with your business goals and understands your unique industry challenges, you will position yourself to make better business decisions and ensure long-term success.

Need help building a valuation team? SHG provides our clients with expert guidance based on extensive industry knowledge and experience. Our financial and operational experts have built strong relationships with our clients, empowering their success. Our team represents a balance of seasoned business operators and astute financial experts. With SHG, your goals and priorities always come first. 

Your business is your most valuable asset. Our innovative methodology has driven successful outcomes for over 40 years. Contact us today to grow your business's value. Contact us today to learn more.