Sun Mergers & Acquisitions performs professional business appraisals for business sale purposes, as well as those that conform to IRS Revenue Ruling 59-60. Various types of valuation are used for estate planning, the potential sale of a business, an IRS issue, partnership conflicts, divorce, financing requirements and other reasons.

Few business valuation firms have more experience and credibility than Sun Mergers & Acquisitions. Many business owners, law firms, accounting firms and financial advisory firms count on Sun M&A as their business valuation provider.

Fair Market Value

Determining the fair market value of a business is a complex procedure with many variables that require consideration. Sun M&A analyzes a firm's strengths, assets, financial performance and growth projections. We also appreciate and properly value the many intangibles inherent in any company that are not represented on static financial statements. To analyze purchase price comparisons, Sun Mergers & Acquisitions utilizes proprietary databases containing operating data and historical records of similar businesses that have been sold in any given industry. Our constant market exposure provides us with a unique and current understanding of transaction values and deal structures in today's marketplace. By determining the justified market range of value that a fully informed buyer is likely to pay for a company, client's mitigate the risk of losing a timely sale with a qualified acquirer by unrealistically overpricing the company, or leaving money on the table by under-valuing the business.

Recasting

Proper interpretation and presentation of financial information is a crucial step in the process and has a significant impact on valuation. Financial statements are typically prepared for tax purposes, not for business valuation or appraisal purposes; and do not accurately reflect the true profitability of a business. The valuator must be able to "read between the lines"; of the financial statements and tax returns to present the total discretionary pre-tax income that would be available. Our professionals work closely with the client and/or CPA to "recast" the company's financial statements so that the valuation accurately interprets the true economic value of the business.

Performing a Business Valuation

A business valuation commonly includes four major phases:

Phase I - Preliminary Steps:

An understanding of the client's requirements and the specific purpose of the appraisal. Sun M&A will define the scope and terms of the valuation engagement.

Phase II - Data Gathering:

We compile information about your company through management questionnaires; interviews; document request lists; and a facility tour.

Phase III - Research and Analysis:

This involves a review and analysis of company documents, financial statements, tax returns and other data. At the same time we research the relevant economic factors, industry trends and influences, potential risk factors, comparable businesses, and recent relevant completed transactions. We work with the client to understand, recast and project the financial information and performance.

Phase IV - Valuation:

Once the relevant valuation methodologies have been determined, the value of the business is estimated by incorporating all of the insight gained during the analysis phase. All assumptions and results are tested for validity and reviewed in a draft report with the client. Only then do we issue the final report.

A Valuation is Critical to Resolve Business Sale Related Issues:

Valuations are essential when dealing with issues related to the full or partial sale of a business. A valuation will establish and defend the appropriate value for the company.

When selling a business, a professional valuation report is an advantage to:

Avoid leaving cash on the table by selling below market value
Prevent overpricing the business, thereby making it unsaleable
Justify and defend the valuation expectation to the buyer
Attract as many qualified buyers as possible
Assist buyers to validate and secure financing

A Valuation Improves the Probability of Securing Financing:

Securing financing can be a major challenge to any business, whether through the sale of stock or traditional bank financing. A certified valuation report increases the confidence and comfort level of a potential investor or lending institution.

For more information about how you can benefit from the services of Sun Mergers & Acquisitions, please call us toll free (800) 232-0180 or fill out his short form.

Sun Mergers & Acquisitions
411 Route 17 South ~ Suite 300 ~ Hasbrouck Heights, NJ 07604
Phone: (201) 727-1300

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Business Valuations and Appraisals For Private Middle Market Companies