Valuation Engagement Letter Template for Philippines

The Valuation Engagement Letter serves as the foundational document for establishing a professional relationship between a valuation service provider and client in the Philippines. It is typically used when a company, individual, or organization requires a formal valuation of assets, businesses, or securities. The document must comply with Philippine regulations, including the Real Estate Service Act (RA 9646) for property valuations and the Securities Regulation Code for securities-related valuations. The letter includes essential elements such as scope definition, methodology, professional fees, timelines, and deliverables, while addressing specific requirements of Philippine law regarding professional services, data privacy, and regulatory compliance. This document is crucial for protecting both parties' interests and ensuring clear communication of expectations and obligations.

1. Letter Head and Date: Professional letterhead including firm details, address, and date of the letter

2. Client Address and Salutation: Full name and address of the client entity and appropriate salutation

3. Purpose of Engagement: Clear statement of the valuation purpose and the asset/business being valued

4. Scope of Services: Detailed description of the valuation services to be provided, including methodology and approach

5. Professional Standards: Statement of compliance with relevant Philippine valuation standards and professional requirements

6. Basis of Valuation: Definition of the value basis to be used (e.g., fair market value, liquidation value)

7. Information Requirements: List of information and documents required from the client

8. Timeline and Deliverables: Expected completion date and description of deliverable reports/documents

9. Professional Fees: Fee structure, payment terms, and any additional costs

10. Confidentiality: Confidentiality obligations and data protection commitments

11. Limitation of Liability: Scope of the firm's liability and any limitations thereof

12. Acceptance Terms: Instructions for accepting the engagement and signature blocks