Determining the Value of Your Business
Understanding the realistic and achievable market value of your firm is of major importance when considering the sale of your business.
Sunbelt 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.Ê We will present the company's value in commonly accepted and concise terms that all parties involved can readily understand and benefit from.
Financial statements are prepared utilizing "generally accepted accounting principles", but they do not always reflect the true economic value of a company.Ê In reviewing a company's financial statements, it is often necessary to include analytical adjustments that may include the following:
Pricing fixed assets at current market value - not historical book value
Adjusting book depreciation where it is not a true reflection of economic depreciation
Making inventory adjustments when necessary
Normalizing owner/executive compensation and fringe benefits
Reviewing non-recurring and non-cash expenses, along with non-transferable interest burden
These and other adjustments are made to the financial statements, thereby providing an accurate understanding of the recast earnings, which play a major role in properly assessing the value of your company.
By understanding the various operational elements of your company, we are able to assess the relative impact of its opportunities and perceived risk.Ê Elements which increase risk, decrease the value of the business, and conversely, elements that decrease risk, increase value.Ê The following are examples of qualitative factors that are analyzed: years in business, proprietary content, industry life cycle, industry stability, relative size in the marketplace, customer base concentrations, supply source concentration, product differential, strength of market, size of market, management quality and tenure.Ê Additional concentration is placed on financial forecasting models, industry analysis and examination of comparable industry transactions.
Upon finalizing the report, Sunbelt will meet with management to apply the valuation results to your specific objectives.Ê Our goal is to provide you with the accurate information necessary to address your valuation needs.