Protecting Your Business Partnership
For companies with more than one owner, a well-structured Buy-Sell Agreement protects both the business and its shareholders. It defines how ownership interests transfer when a partner retires, withdraws, becomes disabled, or passes away.
Even the best-drafted agreement depends on one critical element: a fair, defensible valuation. Sun Business Valuations provides independent business appraisals, prepared by Certified Business Valuation experts, that give every shareholder clarity and confidence during ownership transitions.
What Is a Buy-Sell Agreement Valuation?
A buy-sell agreement valuation establishes how a partner’s interest will be priced and transferred when specific events occur. It ensures that each owner, or their heirs, receives fair value while preserving business continuity.
Without an objective valuation, ownership changes can lead to disputes, forced sales, or unintended new partners. Common triggering events include death, disability, retirement, voluntary withdrawal, termination, divorce, or bankruptcy.
Why Professional Valuation Matters
A precise valuation method keeps transitions smooth, fair, and legally sound.
Objectivity and Defensibility
An accredited, third-party appraisal removes emotion from difficult situations. Certified professionals apply accepted methodologies and thoroughly document their conclusions, ensuring the results withstand scrutiny from shareholders, heirs, and courts.
Tax and Regulatory Compliance
The IRS closely examines valuation methods in buy-sell agreements, particularly for estate or gift-related ownership transfers. Independent, well-supported valuations reduce the risk of challenges or penalties.
Valuation Discounts
The appropriate use of lack-of-control and marketability discounts can meaningfully affect the buyout price. Sun’s accredited appraisers analyze your agreement and ownership structure to determine when and how these discounts apply.
Why Clients Choose Sun Business Valuations
Attorneys, accountants, and business owners rely on Sun Business Valuations for objective, well-documented buy-sell valuations.
Named Appraiser Status
Sun is the designated appraiser in numerous buy-sell agreements nationwide, a reflection of our credibility and the confidence placed in our methodology.
Specialized Expertise
We understand the complexities of multi-owner companies, control premiums, minority discounts, and the legal implications of different buy-sell structures.
Tailored Engagements
Every valuation is customized to your agreement’s language, your company’s financial realities, and your industry’s dynamics.
Certified Professionals
Our professionals maintain valuation credentials from the National Association of Certified Valuation Analysts (NACVA), the American Institute of Certified Public Accountants Accreditation in Business Valuation (ABV), in addition to the CPA certification, and the American Society of Appraisers (ASA). All valuations comply with IRS Revenue Ruling 59-60 and are accepted by major accounting firms and courts.
Annual Valuation Updates Keep Agreements Current
A buy-sell agreement remains reliable only when its valuation reflects present-day conditions. Outdated business valuations can lead to inequitable payouts, tax complications, and insurance shortfalls when ownership changes.
Annual updates ensure the certificate of value evolves with your company’s performance, industry trends, and market multiples. Regular reviews keep all shareholders aligned and reduce the risk of disputes before triggering events arise.
Because Sun already understands your business, updates are efficient and cost-effective, delivered at a reduced rate without compromising rigor.
The Sun Valuation Process
Our process begins with a review of your agreement to identify valuation provisions and timing requirements. We collect financial and operational data, evaluate market comparables, and apply the most appropriate methodologies — income, market, or asset-based — depending on your agreement’s terms.
The result is a comprehensive, clearly documented valuation report. For annual updates, we analyze year-over-year financial and market changes and issue a concise summary highlighting key adjustments.
Common Buy-Sell Agreement Pitfalls
Many agreements falter because business valuations are outdated, valuation language is vague, or funding is insufficient. Working with your attorney and a qualified business appraisal firm prevents these issues and keeps your agreement practical, enforceable, and up to date.
How Buy-Sell Valuations Support Business Continuity
Beyond ownership transitions, professional valuations demonstrate sound governance to lenders and investors, aid strategic planning by clarifying value drivers, and promote family or partner harmony through transparency and fairness.
Industries We Serve
Sun Business Valuations provides buy-sell agreement valuations across professional services, healthcare, manufacturing and distribution, technology, construction, real estate, business services, and retail. Our industry experience ensures every business valuation is accurate, defensible, and relevant.
Frequently Asked Questions
Ready to Discuss Your Buy-Sell Agreement Valuation?
Whether you’re creating a new agreement, updating an existing one, or responding to a triggering event, Sun Business Valuations provides professional buy-sell agreement valuations and annual updates nationwide—delivering accurate, defensible results that stand up to legal and financial scrutiny.
Our certified experts bring decades of experience helping partners manage ownership transitions with confidence and clarity.
To discuss your situation and receive information about the business valuation process, time frame, and cost, please give us a call, at 800.232.0180, or complete this form, and we will get back to you shortly.