Valuation Advisory Engagement Letter Singapore
Valuation Advisory Engagement Letter Singapore
Sample engagement letter to provide valuation advisory services
Here is the complete text of the Valuation Advisory Services Engagement Letter, with Confidentiality, PDPA, Cross-Border Data Transfers, and SIAC Arbitration clauses:
ENGAGEMENT LETTER – VALUATION ADVISORY SERVICES
[Client Name / Company Name]
[Client Address]
Singapore
Attention: [Client Contact Person Name / Title]
Date: 23 October 2026
SUBJECT: ENGAGEMENT LETTER – VALUATION ADVISORY SERVICES
Dear [Client Name / Contact Person],
We are pleased to submit this Engagement Letter setting out the terms and scope under which Bestar Services Pte. Ltd. (“we”, “us”, or the “Firm”) will provide valuation advisory services to [Client Company Name] (“you” or the “Client”).
1. Scope of Services & Purpose
1.1 Subject Matter: Valuation of [insert target entity, shares, intangible assets, business enterprise, or financial instrument].
1.2 Purpose: The valuation is being conducted solely for [insert purpose, e.g., internal restructuring / potential acquisition / financial reporting under SFRS(I) / tax compliance in Singapore].
1.3 Valuation Date: As of [insert Valuation Date, e.g., 30 June 2026].
1.4 Basis of Value: [e.g., Fair Value, Market Value, or Investment Value] as defined in applicable standards.
2. Framework & Standards
The valuation advisory services will be conducted in accordance with recognized professional standards, including:
The International Valuation Standards (IVS) issued by the International Valuation Standards Council (IVSC).
Guidelines and code of ethics established by the Institute of Valuers and Appraisers, Singapore (IVAS), where applicable.
3. Valuation Methodology
Depending on the availability and reliability of data, we will consider standard valuation approaches, including:
Income Approach (e.g., Discounted Cash Flow Method)
Market Approach (e.g., Comparable Companies or Precedent Transactions Method)
Cost / Asset-Based Approach (e.g., Adjusted Net Asset Value Method)
4. Client Responsibilities & Information Requirements
To enable us to perform the services, you agree to:
Provide timely access to all relevant financial statements, management accounts, business plans, forecast models, and underlying operational data.
Ensure that all facts, information, and representations provided to us are accurate, complete, and not misleading.
Promptly inform us of any material changes or events occurring prior to the issuance of our final valuation report.
5. Key Deliverables & Reporting
Upon completion of our procedures, we will issue a written Valuation Report in draft and final forms. The report will outline the background, methodology, key assumptions, sensitivity analysis, and conclusions of value.
6. Limitation of Liability & Third-Party Reliance
6.1 Restricted Use: The final Valuation Report is prepared solely for the internal use and benefit of the Client for the stated purpose. It may not be disclosed, quoted, or distributed to any third party without our prior written consent.
6.2 No Audit: Our work does not constitute an audit, review, or compilation of financial statements under Singapore Standards on Auditing (SSA).
6.3 Liability Cap: To the maximum extent permitted by Singapore law, our total cumulative liability arising out of or in connection with this engagement shall be limited to [e.g., the total fees paid to us under this engagement / SGD X].
7. Fees & Payment Terms
7.1 Professional Fees: Our fee for this engagement is SGD [Amount] (excluding Singapore Goods and Services Tax (GST) and out-of-pocket expenses).
7.2 GST: GST at the prevailing Singapore rate (currently 9%) will be added to our fees where applicable.
7.3 Payment Schedule:
[30%] Retainer deposit upon execution of this Engagement Letter.
[40%] Upon submission of the draft Valuation Report.
[30%] Upon delivery of the final Valuation Report.
7.4 Terms: Invoices are payable within [14 / 30] calendar days from the invoice date.
8. Confidentiality
8.1 Confidential Information: Each party agrees to keep confidential and not disclose to any third party any confidential, proprietary, or sensitive information obtained from the other party in connection with this engagement ("Confidential Information"), including but not limited to business plans, financial projections, customer data, trade secrets, valuation models, and draft reports.
8.2 Permitted Disclosures: A party may disclose Confidential Information to the extent that such information:
(a) Is or becomes publicly known through no breach of this Engagement Letter;
(b) Was already in the receiving party's lawful possession prior to disclosure;
(c) Is required to be disclosed by applicable law, regulation, order of a court of competent jurisdiction, or the rules of a relevant regulatory body or stock exchange (e.g., SGX, IRAS); or
(d) Is disclosed to its legal advisors, auditors, insurers, or subcontractors who are bound by professional duties of confidentiality no less restrictive than those contained herein.
8.3 Survival: The obligations of confidentiality set out in this Clause shall survive the termination or completion of this engagement for a period of [e.g., three (3) / five (5)] years.
9. Data Protection and Personal Data Protection Act (PDPA)
9.1 Compliance with PDPA: Both parties acknowledge and agree to comply with their respective obligations under the Personal Data Protection Act 2012 of Singapore (PDPA) and any secondary regulations, guidelines, or notices issued by the Personal Data Protection Commission (PDPC).
9.2 Collection, Use, and Disclosure: To the extent that the Client provides personal data (as defined in the PDPA) of any individuals (including employees, directors, shareholders, or representatives) to the Firm, the Client warrants that it has obtained all necessary consents from such individuals, or has appropriate lawful grounds under the PDPA, to enable the Firm to collect, use, and disclose such personal data solely for the purposes of fulfilling its obligations under this engagement.
9.3 Data Security & Retention: The Firm shall implement appropriate administrative, technical, and physical security measures to protect personal data against unauthorized access, collection, use, disclosure, copying, modification, disposal, or similar risks. The Firm shall retain personal data only for as long as necessary to satisfy the purpose for which it was collected, or as required for legal, regulatory, or accounting purposes.
9.4 Data Subject Rights & Incidents: In the event of a suspected or confirmed personal data breach affecting data provided by the Client under this engagement, the Firm shall notify the Client without undue delay upon becoming aware of the breach, in accordance with PDPA requirements.
10. Cross-Border Data Transfers
10.1 Transfer Outside Singapore: The Client acknowledges that in the performance of the valuation advisory services, the Firm may need to transfer, store, or process personal data outside Singapore (for example, where data is shared with overseas affiliates, cross-border valuation specialists, or stored on secure cloud servers located in third-country jurisdictions).
10.2 Standard of Protection: Where personal data is transferred outside Singapore, the Firm shall ensure that the recipient entity provides a standard of protection to the personal data so transferred that is comparable to the protection provided under the Personal Data Protection Act 2012 of Singapore (PDPA), in accordance with the regulations and requirements prescribed by the Personal Data Protection Commission (PDPC).
10.3 Client Consent and Warranties: To the extent that the Client provides personal data of individuals residing or located outside Singapore, or transfers data across borders to the Firm, the Client warrants that it has obtained all necessary consents, approvals, and authorizations required under applicable local data protection laws to permit such transfer and processing by the Firm.
11. Governing Law & Dispute Resolution (SIAC Arbitration)
11.1 Governing Law: This Engagement Letter and any non-contractual obligations, disputes, or claims arising out of or in connection with it or its subject matter shall be governed by, and construed in accordance with, the laws of the Republic of Singapore.
11.2 Amicable Settlement: The parties shall endeavor to resolve any dispute, controversy, or claim arising out of or relating to this Engagement Letter, including any question regarding its existence, validity, or termination, amicably through good faith negotiations between senior executives of the parties.
11.3 SIAC Arbitration: If any such dispute is not resolved through negotiation within thirty (30) calendar days of a written notice of dispute being served by either party, the dispute shall be referred to and finally resolved by arbitration administered by the Singapore International Arbitration Centre ("SIAC") in accordance with the Arbitration Rules of the Singapore International Arbitration Centre ("SIAC Rules") for the time being in force, which rules are deemed to be incorporated by reference in this Clause.
11.4 Arbitration Proceedings:
(a) The seat of the arbitration shall be Singapore.
(b) The Tribunal shall consist of one (1) arbitrator to be appointed by agreement between the parties or, failing agreement, by the President of the SIAC Court of Arbitration.
(c) The language to be used in the arbitral proceedings shall be English.
(d) The arbitral award shall be final and binding upon both parties.
12. Acceptance & Confirmation
Please confirm your acceptance of the terms of this engagement by signing and returning the enclosed duplicate copy of this letter.
Yours faithfully,
For and on behalf of
Bestar Services Pte. Ltd.
[Authorized Signatory Name]
[Title / Partner]
CLIENT ACKNOWLEDGEMENT & ACCEPTANCE
We hereby accept and agree to the terms and conditions set out in this Engagement Letter.
For and on behalf of
[Client Company Name]
Signature
Name: [Name]
Title: [Title]
Date: ________________________
Would you to customize this letter with specific details, such as:
Customize the placeholders with specific client and fee details?
Add any specific project milestone schedules or deliverables tables?
Bestar Valuation Advisory Services: Comprehensive Business Valuation & Advisory in Singapore
Valuation Advisory Engagement Letter Singapore
When navigating complex corporate transactions, regulatory compliance, or financial reporting, understanding the exact market value of your business, intellectual property, and assets is critical. Bestar Valuation Advisory Services delivers audit-ready, independent valuation solutions tailored for multinational corporations, mid-market enterprises, and high-growth startups in Singapore and across ASEAN.
Led by credentialed valuation professionals, our valuations strictly adhere to international standards, including the International Valuation Standards (IVS), Singapore Financial Reporting Standards (SFRS/SFRS(I)), and International Financial Reporting Standards (IFRS).
Direct Answer: What are Bestar Valuation Advisory Services?
Bestar Valuation Advisory Services provides independent valuation reports, financial modeling, and strategic appraisal advisory in Singapore. Bestar assists businesses with:
M&A Buy-Side and Sell-Side Valuations
Purchase Price Allocation (PPA) under SFRS(I) 3 / IFRS 3
Intellectual Property (IP) & Intangible Asset Valuations
Financial Reporting & Impairment Testing (SFRS(I) 1-36 / IAS 36)
Tax & Restructuring Valuations for IRAS compliance and Transfer Pricing
Litigation Support & Dispute Resolution expert opinions
Core Valuation Services Offered by Bestar
1. Mergers & Acquisitions (M&A) Transaction Advisory
Accurate valuation forms the cornerstone of any successful M&A deal. Bestar provides:
Target Company Valuations: Discounted Cash Flow (DCF), Trading Comparables, and Precedent Transaction multiples.
Fairness Opinions & Deal Structuring: Supporting decision-makers and board members in validating transaction terms.
Synergy Valuation: Quantifying operational and financial synergies arising from corporate combinations.
2. Purchase Price Allocation (PPA)
Post-acquisition compliance requires assigning fair values to acquired assets and liabilities:
Identifiable Intangibles: Valuing customer relationships, brand value, software, order backlogs, and non-compete agreements.
Goodwill Determination: Computing residual goodwill in full compliance with SFRS(I) 3 / IFRS 3.
3. Intellectual Property (IP) & Intangible Asset Valuation
Unlocking the latent value of intangible assets is essential for venture debt, licensing, and cross-border IP transfers:
Patents & Proprietary Technology
Trademarks & Brand Equity
Software Codebases & Data Assets
4. Financial Reporting & Statutory Compliance
Ensure your financial statements withstand scrutiny from big-four auditors, ACRA, and regulatory bodies:
Impairment Testing: Annual goodwill and long-lived asset impairment reviews under SFRS(I) 1-36.
Financial Instruments & Share Options (ESOS): Black-Scholes and Monte Carlo simulations for employee share option schemes and convertible debt under SFRS(I) 2 / IFRS 2.
5. Tax Valuation & IRAS Compliance
Mitigate transfer pricing and corporate restructuring tax risks with defensible valuation reports aligned with Inland Revenue Authority of Singapore (IRAS) guidelines:
Cross-Border Asset Transfers
Capital Gains & Restructuring Valuation
6. Litigation & Expert Witness Support
Objective, independent valuation reports for corporate disputes, shareholder buyouts, and arbitration proceedings:
Quantifying shareholder oppression damages.
Determining fair price for share repurchases during commercial conflicts.
Comparison: Bestar Valuation Capabilities at a Glance
Service Domain | Primary Deliverables | Target Standards / Frameworks | Core Business Purpose |
|---|---|---|---|
M&A Valuation | Financial Models, DCF Analysis, Multiple Benchmarks | IVS, Market Standards | M&A Negotiations, Fundraising |
Purchase Price Allocation (PPA) | Independent Fair Value Report | SFRS(I) 3 / IFRS 3 | Post-Acquisition Audit Defense |
IP Valuation | Royalty Relief Method, Excess Earnings Models | IVS 210, ISO 10668 | IP Transfer, Licensing, Debt Collateral |
Impairment Testing | Recoverable Amount Determination | SFRS(I) 1-36 / IAS 36 | Annual Financial Reporting |
Tax & Restructuring | IRAS-Defensible Valuation Briefs | IRAS Transfer Pricing Guidelines | Internal Restructuring & Tax Audits |
Frequently Asked Questions
Why is an independent business valuation important in Singapore?
An independent valuation provides an unbiased, defensible assessment of a company's worth. It is crucial for M&A negotiations, securing bank financing, satisfying IRAS transfer pricing rules, and passing ACRA/auditor reviews for SFRS(I) reporting.
What frameworks do Bestar’s valuation reports follow?
Bestar’s valuation reports strictly follow the International Valuation Standards (IVS), guidelines from the Institute of Valuers and Appraisers, Singapore (IVAS), and financial reporting standards including SFRS(I) and IFRS.
How long does a business valuation take with Bestar?
A typical business valuation engagement takes between 2 to 4 weeks, depending on data availability, operational complexity, and the specific valuation scope.
Contact Bestar Valuation Advisory Services
Ready to determine the true value of your business or intangible assets? Speak directly with Bestar's advisory team:
Website: https://www.bestar-sg.com
Email: admin@bestar-asia.com
Phone: +65 6299 4730 / +65 8836 4489
Address: Bestar Singapore, 23 New Industrial Road, Singapore 018936
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