Document background
The Valuation Engagement Letter is a crucial document used in Nigerian business practice when professional valuation services are required for various purposes such as mergers and acquisitions, financial reporting, tax compliance, or litigation support. This document is essential for establishing a clear professional relationship between the valuation firm and the client, detailing the scope of work, methodology, and deliverables while ensuring compliance with Nigerian regulatory requirements. The letter must adhere to standards set by the Financial Reporting Council of Nigeria, the Estate Surveyors and Valuers Registration Board, and other relevant regulatory bodies. It typically includes specific details about the asset or business to be valued, the purpose of the valuation, the basis of value, and the agreed-upon timeline and fee structure. The Valuation Engagement Letter serves as a protective mechanism for both parties by clearly defining expectations, limitations, and responsibilities within the Nigerian legal framework.
