Business Value Enhancement
Sell vs. Stay Analysis and Much More.
Most people have a clear objective when they invest in publicly traded securities: they want to earn a return, either in dividends or capital appreciation. This clarity of purpose, however, frequently disappears when investments are made in closely held companies. And this is why many such businesses are under performing.
A business valuation appraisal can uncover key areas that you will need to improve and increase the value of your company before a sale.The following is a list of fundamental questions that every shareholder and executive in a closely held company should be able to answer, but seldom can:
- What is my real cash return on my investment in my private company?
- Do I maximize value and minimize risk by continuing to own the business or by selling out?
- When and how do I sell to get the best price for the business?
- What rate of return should my investment yield given its risk?
- How do I determine what the business and my investment in it are worth now?
- How does minority ownership status affect the value and liquidity of an investment?
- What are the most likely future prospects for the business and what factors most threaten it?
- What is the best strategy to build value in the business?
- How do I manage the goal of ownership succession–transferring stock–against management succession–running the company, if my preferred successors are not ready?
Business Value Enhancement Diagnostic Analysis.
The value of a business is largely driven by a company’s pre-tax EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization), also known as adjusted earnings; however, there are many intangibles that also play a large part in determining business value. Recognizing and enhancing these intangible factors in advance, can increase the value of the company.
Drawing upon our experience in the marketplace, Sun Business Valuations, LLC has developed a diagnostic questionnaire to enable business owners to identify potential areas of improvement in advance of selling their company.
This analysis focuses on management, human relations, sales, marketing, operations and finance. There are 22 diagnostic questions and related action items that will help a business owner to recognize deficiencies and take pro-active steps to enhance value as well as a scorecard that will help you take stock as to how your company ranks in these key value enhancement areas.
Start Your Business Valuation Appraisal. Call Us Today.
Get an up-to-date appraisal for your business. Call us toll free (800) 232-0180 to speak with a certified Valuation Analyst who will answer all your questions and explain how convenient and confidential it is to have Sun Business Valuations prepare an appraisal for your business.

