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Valuation Engagement Letter Template for Singapore

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Key Requirements PROMPT example:

Valuation Engagement Letter

"Need a Valuation Engagement Letter for a technology company acquisition, requiring business valuation services to be completed by March 2025, with specific provisions for intellectual property valuation and cross-border considerations between Singapore and Japan."

Document background
The Valuation Engagement Letter serves as the fouNDAtional agreement between valuation professionals and their clients in Singapore. This document is essential when independent valuations are required for corporate transactions, financial reporting, regulatory compliance, or strategic decision-making. It encompasses key elements such as scope definition, methodology, deliverables, and professional standards adherence, while ensuring compliance with Singapore's regulatory requirements and professional standards. The letter provides clarity on roles, responsibilities, and expectations while offering legal protection to both parties.
Suggested Sections

1. Engagement Details: Date, reference number, and recipient information for the engagement letter

2. Subject of Valuation: Clear identification of the asset, business or interest being valued

3. Purpose and Scope: Detailed outline of valuation purpose, intended use, and scope of services

4. Professional Standards: Reference to applicable standards (SSVS, IVS) and compliance statement

5. Valuation Basis: Methodology and approach to be used in the valuation

6. Timeline and Deliverables: Expected completion date, milestones, and format of deliverables

7. Fee Structure: Professional fees, payment terms, and out-of-pocket expenses

8. Engagement Team: Key personnel involved and their roles

Optional Sections

1. Site Visits: Details of physical inspection requirements for tangible asset valuations

2. Third Party Reliance: Terms governing the use of valuation report by specified third parties

3. Specialist Input: Details of any external specialist expertise required

4. Conflict Disclosure: Disclosure of any potential conflicts of interest

Suggested Schedules

1. Standard Terms and Conditions: Detailed terms governing the engagement including liability limitations and confidentiality

2. Information Requirements: List of documents and data required to perform the valuation

3. Team Structure and CVs: Detailed information about the engagement team and their qualifications

4. Valuation Methodology: Detailed explanation of valuation approaches and methods to be employed

5. Fee Schedule: Detailed breakdown of fees, expenses, and payment milestones

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓƵ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions






























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Industries

Companies Act (Cap. 50): Primary legislation governing corporate entities in Singapore, including requirements for corporate valuations and financial reporting

Securities and Futures Act (Cap. 289): Regulates financial markets and securities trading, including requirements for valuation of financial instruments and securities

Business Registration Act (Cap. 32): Governs business registration and related requirements that may affect business valuations

Singapore Standard on Valuation Services (SSVS): Professional standards specifically governing valuation services in Singapore, providing framework for valuation engagements

ISCA Guidelines: Professional guidelines issued by Institute of Singapore Chartered Accountants for valuation and related services

SISV Standards: Standards set by Singapore Institute of Surveyors and Valuers for property and asset valuations

International Valuation Standards (IVS): Global standards for valuation practice and professional valuation services

MAS Guidelines: Regulatory guidelines issued by Monetary Authority of Singapore affecting financial valuations and reporting

SGX Listing Requirements: Requirements set by Singapore Exchange for listed companies, including valuation requirements for corporate actions

Singapore Contract Law: Common law principles governing contractual relationships and engagement letters

Personal Data Protection Act 2012: Legislation governing the collection, use, and disclosure of personal data in Singapore

Evidence Act (Cap. 97): Laws governing admissibility of evidence, including valuation reports in legal proceedings

Housing and Development Act: Specific legislation affecting property valuations, especially for public housing

Financial Advisers Act: Regulates financial advisory services, including valuation of financial instruments

Competition Act: Laws affecting business combinations and market valuations in context of competition assessment

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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