What to Expect When You Work With Sun
Every business valuation starts with understanding why you need it.
A valuation for estate and gift tax planning may have different requirements than one prepared for a divorce, partner buyout, business sale, financing, or another purpose. That’s why our process begins with a conversation about your situation, the intended use of the valuation, and any deadlines or other professionals involved.
From there, Sun Business Valuations guides you through each step of the business valuation process, from gathering the necessary financial and business information to reviewing your completed valuation report. Throughout the process, our goal is to provide an independent, objective, and supportable opinion of value that is appropriate for its intended purpose and adheres to the standards of the National Association of Certified Valuation Analysts (NACVA).
Here's What You Can Expect
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Start With a Complimentary Business Valuation Consultation
Your first step is a conversation with our team about your business and why you need a valuation.
We’ll discuss the purpose of the engagement, how the valuation will be used, your timing, and any circumstances that could affect the scope of our work. This gives us the information we need to recommend the appropriate valuation service and answer your initial questions about the process.
You don’t need to have your financial documents gathered before this conversation. We’ll tell you exactly what’s needed once you decide to move forward.
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Receive Your Scope, Timeline, and Fixed-Fee Quote
Once we understand your needs, we’ll provide a written engagement proposal outlining the scope of our services, expected timeline, and fixed fee.
You’ll know what the engagement includes and what it will cost before the valuation work begins.
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Gather Your Financial and Business Information
Once you engage Sun, we’ll provide an organized request for the financial and business information needed for your specific valuation, along with a questionnaire to help us understand your company’s operations, intangibles, and risk factors. You can upload documents through Sun’s secure client portal.
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Complete Your Intake Interview With a Business Valuation Specialist
After we receive your initial financial and business information, you’ll meet with a Business Valuation Specialist for an in-depth intake interview about your company.
Financial statements tell part of the story. This conversation helps us understand how your business operates, what drives its performance, its strengths and risks, and other factors that may not be apparent from the numbers alone. We’ll also clarify the information you’ve provided and discuss any additional details needed to complete the valuation.
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Research, Analyze, and Value the Business
With a clear understanding of your company and the purpose of the engagement, our valuation team begins the business valuation analysis.
We review the company’s historical financial performance and make appropriate adjustments for items such as owner compensation and benefits and one-time or non-recurring expenses. We also consider qualitative factors that can affect business value, including customer concentration, owner dependency, recurring revenue, operational risks, and the company’s competitive position.
Our research may also include economic conditions, industry trends, and relevant public and private transaction data. Where projections are relevant, we work with clients to consider anticipated future financial performance.
We consider the income, market, and asset approaches to valuation and determine which methodologies are appropriate for the company and the purpose of the engagement. We then review the assumptions and results before reaching our valuation conclusion.
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Receive and Review Your Valuation Report
When your valuation is complete, we'll provide you with your business valuation report.
We always offer to review the report with you and any attorneys, accountants, financial advisors, or other professionals involved in the engagement. We'll walk you through the valuation conclusion and the analysis supporting it and answer any questions along the way.
If any information needs to be updated or clarified, we'll update the report accordingly.
We stand behind our conclusions and remain available to help as you and your advisors put the valuation to use.
Business Valuation Process FAQs
Sun typically completes a business valuation within 10 to 15 business days after receiving the required information and completing the intake interview. The timing may vary depending on the complexity of the business, the purpose of the valuation, and whether additional information is needed during the engagement.
If you’re working toward a specific deadline, let us know during your initial consultation so we can discuss timing at the outset.
No single valuation method fits every business or situation.
Sun considers the income, market, and asset approaches and determines which methodologies are appropriate based on the company, available information, and purpose of the valuation. Our analysis may use one or more methodologies, and we review and test the resulting conclusions before completing the report.
Yes. Sun regularly works with the attorneys, accountants, financial advisors, and other professionals involved in an engagement.
They may review the report to help ensure the final valuation can be used effectively for its intended purpose.
Yes. Sun provides business valuation services to clients throughout the United States, and we can complete the valuation process remotely. Clients can exchange documents through Sun’s secure client portal, and the valuation team can meet remotely.
Your location does not change the level of analysis or support provided during the engagement.
A valuation reflects your company’s value as of a specific date and for a specific purpose. Depending on how you use the valuation, it may make sense to update it periodically for planning. You should also consider a new valuation after significant events, such as a major change in your business model, substantial growth, an industry disruption, or preparation for a transaction.
Ready to Start Your Business Valuation?
The first step is a complimentary consultation to discuss your situation, the purpose of the valuation, and your timing. Call Stephen Goldberg, Managing Partner, at 800.232.0180, or complete this form, and we’ll be in touch shortly.
Want a closer look first? Read Top Business Valuation Services Questions Answered →