How to conduct the valuation advisory conversation with your client
A valuation report is only valuable once it has truly resonated with your client. Yet, many accountants find that the conversation about business value is more challenging than preparing the report itself. Figures and assumptions are one thing, but guiding an entrepreneur through what their company is worth and why requires a different approach. How do you best approach that conversation?
1. Start with the why, not the number
Entrepreneurs are often curious about one thing: the final value. If you start there, the rest of the conversation lacks a foundation. First, explain why this valuation is relevant now, whether it concerns an approaching sale, external financing, or simply gaining insight into progress. This gives the conversation a clear purpose before the figures are brought to the table.
2. Show where the value originates
Instead of presenting the final result immediately, it is more convincing to show the build-up. Which cash flows form the basis? Which risks are incorporated into the discount rate? By identifying the underlying value drivers, your client understands not only what the company is worth, but also why.
3. Be transparent about assumptions
A DCF valuation looks to the future and therefore relies on assumptions regarding growth, margins, and risk. Entrepreneurs often have their own views on this, and that is an asset, not necessarily an obstacle. Discuss the most important assumptions explicitly and ask your client for their perspective. This turns the valuation into a collaborative product rather than a result imposed from above.
4. Translate the valuation into concrete actions
A number alone does not say enough. It is more valuable to discuss together which factors influence the value most and what the entrepreneur can do themselves. Consider reducing customer concentration, documenting knowledge, or improving recurring revenue. In this way, the conversation becomes not just a retrospective, but also a look ahead.
5. Schedule a follow-up
A valuation advisory conversation is rarely a one-off exercise. At the end, agree on a concrete follow-up moment—for example, a year later—to discuss how the value has developed and whether the actions have had an effect. This gives your client a reason to take the valuation seriously and provides you with a natural opportunity to maintain contact.
From report to relationship
The valuation conversation is the ultimate opportunity to strengthen your role as an accountant. While annual accounts primarily look back, the valuation conversation offers room to look forward and act as a strategic sparring partner regarding the company’s course. Entrepreneurs remember these types of conversations, and it is precisely this type of advisory service that distinguishes you from firms that only handle the numbers.
Would you like to substantiate this conversation with a clear and well-structured valuation report? Try ValuePartner’s business valuation software.