Whether you are a practicing Chartered Accountant advising a client on a preferential allotment, or an Insolvency Professional appointing a valuer under the CIRP process, the choice of Registered Valuer has a direct bearing on the credibility and defensibility of the engagement. Getting it right is not just about compliance — it is about protecting your clients and your own professional reputation.
Why the Choice Matters More Than You Think
Under the Companies Act, 2013, and the Insolvency and Bankruptcy Code, 2016, certain valuations are mandatorily required to be conducted by an IBBI Registered Valuer. This is not a mere formality. The valuation report becomes a document of record — scrutinised by auditors, regulators, creditors, and in some cases, the NCLT. A poorly reasoned or technically deficient report can expose the appointing professional to reputational risk and, in extreme cases, regulatory action.
For CAs advising listed or unlisted clients, the valuer's work directly impacts statutory filings, tax assessments, and board approvals. For Insolvency Professionals, the liquidation value and fair value estimates submitted by the valuer form the backbone of the resolution process. The stakes are high.
Key Criteria for Selecting a Registered Valuer
1. Verify IBBI Registration and Asset Class
This seems obvious, but is frequently overlooked in practice. Registered Valuers are authorised for specific asset classes — Securities or Financial Assets (SFA), Land and Building, or Plant and Machinery. For financial instruments, equity shares, preference shares, debentures, derivatives, ESOPs, and other securities, you need a valuer registered under the SFA category. Always verify the registration number on the IBBI website before engagement.
2. Assess Sector and Instrument Experience
A valuer with extensive experience in manufacturing company valuations may not be the best fit for a technology startup or a media company. Similarly, valuing equity shares is fundamentally different from valuing convertible instruments, ESOPs, or derivative contracts. Ask for a track record — not just the number of valuations, but the types of companies, instruments, and regulatory contexts they have worked in.
3. Evaluate Technical Methodology Competence
A competent valuer should be well-versed in multiple approaches: the Income Approach (DCF, capitalisation of earnings), Market Approach (comparable company analysis, precedent transactions), and Asset Approach (net asset value, liquidation value). They should be able to articulate why a particular methodology was chosen and how it aligns with the specific regulatory framework — whether it is Rule 11UA of the Income Tax Act, Ind AS 113 for fair value measurement, or the IBC framework for resolution.
4. Independence and Professional Integrity
This is non-negotiable. The valuer must have no conflict of interest with the entity being valued, its promoters, or related parties. For IBC valuations, independence requirements are even more stringent. A valuer with institutional training — particularly those with Big 4 or equivalent professional backgrounds — typically brings a stronger culture of independence and documentation rigour.
5. Quality of Reporting and Communication
The valuation report is ultimately what auditors, regulators, and stakeholders see. It should be clearly structured, logically reasoned, with transparent assumptions and sensitivity analysis where appropriate. Ask to see a sample report (with confidential information redacted) before engaging. The quality of the report often reflects the quality of the underlying analysis.
6. Turnaround Time and Responsiveness
Particularly relevant in IBC matters where statutory timelines are strict, or in transaction scenarios where deal closings have fixed deadlines. Discuss expected timelines upfront and ensure the valuer has the bandwidth to deliver within the required window.
Common Mistakes to Avoid
Selecting a valuer purely on the basis of the lowest fee is a false economy. In our experience, the most costly valuations are those that need to be redone or defended under scrutiny because they were inadequately reasoned. Similarly, avoid engaging valuers who are willing to provide a pre-determined conclusion — a clear red flag for independence issues.
A Note for Insolvency Professionals
Under the CIRP framework, the Resolution Professional is required to appoint two registered valuers for determining the fair value and liquidation value. The quality of these valuations directly impacts the feasibility of resolution plans and creditor recoveries. Given the high-stakes nature of these engagements and the scrutiny of the Committee of Creditors, it is worth investing time in selecting valuers with specific IBC experience and a track record of producing reports that withstand NCLT review.
How Acuere Can Help
At Acuere Consultancy, we are IBBI Registered Valuers (Securities & Financial Assets) with a track record of 100+ valuations across sectors including manufacturing, metals & mining, media, technology, FMCG, real estate, and online education. Our team brings Big 4 training and a commitment to independence, rigour, and clear communication. Whether you need a valuation partner for a one-off engagement or an ongoing relationship for your practice, we would be happy to discuss how we can support you.