The Sun Difference:

The SBV Approach to Business Valuations

We provide a well-defined valuation process that considers a variety of income, market and asset approaches to identify the methodologies that best suit your company and valuation purpose.  Appraisals are independent, objective, and supportable values of opinion that adhere to the National Association of Certified Valuation Analysts (NACVA), American Society of Appraisers' (ASA) standards,and Uniform Standard Professional Appraisal Practices (USPAP).  We coordinate our service with your other advisors to confirm that objectives are achieved.

Phase I - Preliminary Steps: Discuss the project with principals and advisors to ensure a complete understanding of the objectives and purpose of the business valuation engagement. Sun appreciates that different valuation purposes dictate alternative approaches.

Phase II - Data Gathering: We compile information about your company through detailed questionnaires, management interviews, document review, and a facility tour. Our ability to fully understand all financial and operational aspects of a client’s company enables us to better achieve the valuation objective and support our conclusions. This requires a full understanding of the financial statements and any required recasting adjustments to account for owner benefits, perquisites, one-time and non-recurring expenses, intangible assets, and the operational and industry risk factors that can substantiate higher or lower valuation conclusions. We work with the client to generate projections of the anticipated future financial performance.

Phase III - Research and Analysis: This involves a review and analysis of company documents, financial statements or tax returns, operational information, intangibles, risk factors and other data. Sun researches the relevant economic factors, industry trends and influences, potential risk factors and completed public and private comparable industry transactions. Financial statements are prepared for tax purposes and must be properly interpreted and recast in order to utilize the financial information for business valuation purposes.

Phase IV - Valuation Preparation: Our reports include a comprehensive presentation of the specific business risk factors; a detailed description of the company, the industry, and its market positioning; and assessment of trends in the specific industry. Detailed recast financial statements are included in the report.

Phase V - Valuation Methodologies: Typically we value the company utilizing 4 to 6 separate valuation methodologies. This enhances credibility and supports valuation conclusions.  We consider, perform, and review an array of valuation methodologies to determine which best apply given the specifics of the company, purpose of the valuation, and instght gained during the analysis phase.  All assumptions and results are tested for validity.

Phase VI - Management Review: A final draft of the report is reviewed with the client and any other professionals involved. The valuation is thoroughly explained to our client and the associated advisors to ensure a thorough understanding of its conclusions, confirm accuracy and enable the report to be fully utilized for the intended purpose. If appropriate, we will make required revisions to the draft. Only then do we issue the final report. Sun can update the report as required.