Frequently Asked Questions

Sun Business Valuations, LLC will analyze your financial, marketing, industry and operational data and transform it into an organized financial picture, with emphasis on determining the fair market value of your firm. We present the Company's value in commonly accepted and concise terms that the client and other professionals involved can readily understand and benefit from. Read a detailed presentation about the business valuation process.

We compile information about the operational aspects, intangibles and risk factors impacting your company through the use of 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 or corporate tax returns (typically 3 years, plus available interim information) and any associated 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 our clients to develop realistic projections when necessary.

There are numerous factors other than financial information that must be considered when conducting a business valuation. These include analyzing numerous intangibles such as management, competitive niche, expansion opportunities and risk factors. Aside from cash flows and their ability to forecast the future, the existence or absence of risk factors has perhaps the greatest impact on the value of privately held companies. The presence of risk factors such as: owner, customer, vendor and employee dependencies; excessive concentrations; transferability of relationships; technology; market forces; competition; etc., casts doubt about the predictability of future earnings, which has a direct impact on business value. Financial projections, industry analysis, and a review of the values and terms of comparable completed transactions will have an impact on valuation.

We routinely receive comments about how thorough and comprehensive, yet easy to understand, our valuation reports are. The valuation conclusions and analysis are presented, reviewed and fully explained to our clients and their advisors to ensure complete understanding.

Sun Business Valuations, LLC is affiliated with Sun Mergers & Acquisitions, LLC, which specializes in the sale and merger of privately held small and mid-market companies. This business sale and acquisition experience provides Sun's business valuation division with added credibility given its practical experience with the business valuation process. Sun also provides consultation, related litigation support and expert witness services.

We understand the sensitive nature of a company's internal information and treat the information with the utmost confidentiality and care. Information related to our clients is never released to outside parties without prior authorization.

Valuations are required or sought for a specific purpose, wherein timely results are typically an important factor. Sun has the resources to provide a completed valuation within 10 to 15 business days of receipt of your required information.

The business valuation report is presented in a professionally bound booklet. Our reports include:

• An explanation of the purpose of the valuation
• A statement of value
• A thorough presentation of the business risk factors specific to the company and industry
• A description of the company and its market positioning
• A review and assessment of the prevailing economic conditions and trends in the industry
• A detailed recast financial statements covering historical and projected periods
• A review of multiple valuation methodologies and justification for those selected, given the specifics of the company and the purpose of the valuation
• Estimation of value based upon a weighted average of the various valuation indications of the methodologies utilized.

All assumptions and results are tested for validity.

The cost of valuation services is determined on a case-by-case basis, depending on the scope of the engagement. This can be assessed during our initial telephone conference or consultation meeting.

Unlike many firms that rely on templates and "boilerplate" formats, Sun customizes each valuation and the selection of valuation methodologies to specifically address the unique purpose of the valuation and account for the individual aspects of each company and industry.

We appreciate that obtaining a business valuation is a serious matter with important implications to our clients. We encourage you to speak to former clients to validate our capabilities and their experiences with Sun Business Valuations, LLC.

Sun Business Valuations, LLC is a long-time member of the Institute of Business Appraisers (IBA) and NACVA. Sun's valuations have been reviewed and accepted by many highly respected accounting firms, stand up to legal scrutiny, and when appropriate, conform to IRS Revenue Ruling 59-60.