| Understanding
the realistic and achievable market value of your business
is of major importance when considering a sale.
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. 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. 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.
Elements which increase risk, decrease the value of the business,
and conversely, elements that decrease risk, increase value.
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 concentration, supply source concentration,
product differential, strength of market, size of market,
management quality and tenure. 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. Our goal is to provide you with
the accurate information necessary to address your valuation
needs.
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