A Calculation Engagement refers to the situation where a business valuator is engaged to go through a limited procedure towards estimating the fair market value of a business, business ownership interest, security, or intangible asset, deduced through the application of valuation procedures agreed upon by the valuation analysts and the client. The conclusion of value under this process is referred to as “calculated value”. This process is a “back of an envelope” estimate arrived at without going through the full rigor of due diligence to ascertain certain facts provided by management of business owners to make the necessary adjustments. The valuation process under such instances is not independent. Sometimes, it involves the reliance on only one valuation method rather than the three required for full scope business valuation work. Typically, the valuation analyst arrives at the calculated value by relying on experience and professional judgment to the value or range of values based on those procedures. Because calculation engagement is not fully independent and may vary significantly from full scope fair market value assessment, such reports are used largely for internal purposes and most valuers would not defend calculation value in courts and for settlements.