A Valuation Starts With Understanding the Business.
Seven structured phases — from discovery to delivery — designed to produce a result that reflects reality, survives scrutiny, and gives you the confidence to act.
Every Verum engagement starts the same way — with a conversation. The structured process below applies to our valuation practice, where we've refined a seven-phase methodology over hundreds of engagements. For our other practices — Performance and Advisory — the engagement process is tailored to the scope and described on each practice page.
Most valuations start in the model. Ours starts with a conversation.
Every assumption we make is grounded in what we learn about your business — not generic industry averages. The seven phases below are how we ensure that.
From Conversation to Conviction
- 01
Discovery
A structured 90-minute interview with management or the owner — not a data request form. We want to understand how the business makes money, what drives its margins, where its real risks sit, and what the owner believes is driving value. This conversation shapes everything that follows.
OutputBusiness Understanding Memo - 02
Information
We identify the base files required to support the valuation — historical financial statements, corporate and ownership structure, key commercial contracts, debt and financing detail, and any existing forecasts. The prior conversation becomes a concrete, prioritized information checklist.
OutputInformation Checklist + Data Room Structure - 03
Assumptions
Every assumption in the model — revenue growth, margin trajectory, capital investment, working capital behavior, terminal value drivers, and capital structure — is grounded in what we learned in Discovery and supported by what we received in Information. No black-box inputs.
OutputDocumented Assumption Set - 04
Model Run
Assumptions are loaded and the valuation model is executed. The base case is produced: enterprise and equity value by method (DCF, market comparables, precedent transactions), projected financial statements, Monte Carlo simulation, and a preliminary Valuation Confidence Rating.
OutputBase Case Valuation + Preliminary Confidence Rating - 05
Calibration
Our team critically reviews the base case — not just for mathematical accuracy, but for business judgment. Does the result make sense given what we know about this business? We challenge our own assumptions, stress-test the key drivers, and calibrate until the result faithfully reflects the company.
OutputCalibrated Base Case + Peer Review Sign-Off - 06
Scenarios
The optimistic scenario translates the business's most credible opportunities into quantified assumptions. The adverse scenario does the same with its most material risks. Both are anchored in the real business — not mechanical percentage variations. The result is a valuation range with meaning.
OutputOptimistic + Adverse Scenario Valuations - 07
Delivery
The client receives the complete deliverable package: the Valuation Report with full methodology and workings, the IC Memo for investment committee use, the Risk & Scenario Report, and the Valuation Confidence Rating — an explicit score indicating how much weight to place on the result, with the factors that drive it.
OutputValuation Report · IC Memo · Risk Report · Confidence Rating
The more cycles we run, the sharper the result.
In a first engagement, we build the business understanding from scratch. By the third cycle, we know how this business behaves — what drives variance, which assumptions are stable, and where the real risks sit. The Confidence Rating improves. The calibration time shortens. You get a better result, faster.
Valuation Confidence Over Cycles
How a Performance Engagement Works
- 01
Scoping & Data Onboarding
We start with a scoping call to understand your portfolio, your reporting obligations, and your stakeholders. Then we onboard your data — connecting to custodians, fund administrators, or internal systems to establish a clean data pipeline.
- 02
System Setup & Baseline
We configure the reporting framework — NAV methodology, performance benchmarks, attribution model, and scenario assumptions. The first cycle establishes the baseline that all future reporting builds on.
- 03
First Report Cycle
The initial report is produced as a draft for your review. We walk through it together, calibrate the format and level of detail to your audience, and finalize the template that will govern ongoing delivery.
- 04
Ongoing Delivery
Reports are delivered on an agreed calendar — monthly, quarterly, or annually. Each cycle includes a review call to discuss results, flag material changes, and update scenario assumptions as needed.
How an Advisory Engagement Works
- 01
Situation Assessment
Every advisory engagement starts with understanding where you are and where you want to be. We assess the business, the ownership structure, the transaction landscape, and the stakeholders involved — then define a clear objective.
- 02
Workstream Definition
We scope the engagement into defined workstreams — each with its own deliverable, timeline, and owner. Whether it's a capital raise, a deal negotiation, or a CFO buildout, the plan is concrete before any work begins.
- 03
Execution & Check-ins
Work proceeds against the plan with regular check-ins — weekly for active transactions, biweekly or monthly for retainer engagements. We surface issues early, adjust scope when circumstances change, and keep stakeholders aligned.
- 04
Deliverable or Close
The engagement ends with a clear output — a closed transaction, a delivered report, a completed compensation plan, or a standing CFO function handed off to an internal hire. We define the exit before we start.
Ready to start your first engagement?
The Discovery interview is where every valuation begins. It costs you 90 minutes and gives us everything we need to build something defensible.
Ready to talk? Let's start with a conversation.
We respond to every inquiry within one business day.