find your local office 
Valuations
Providing valuation services to our clients is a integral part of our business. Our valuation engagements take on many forms and primarily depend on the varying needs of our clients including, but not limited to, business sales and acquisitions, buy-outs of existing partners and shareholders, estate planning, divorces, business financing and other special circumstances. The following paragraphs summarize some of the typical types of valuation services we provide.
Brokers Professional Opinion of Value
A business broker’s opinion of value (BOV) is an estimate of a business’s value based on a business broker’s analysis and experience. The BOV is designed to assist business owners with (a) establishing an asking price for their business, (b) exit planning for business owners contemplating retirement and (c) overall business and financial planning.
The BOV report is typically based on the broker’s analysis of: (a) comparable past sales (comps), (b) knowledge of current market conditions, (c) the business’ financial performance and condition and (d) other variables such as location, industry etc.
As part of the BOV, the broker should also provide insights on how different deal structuring scenarios could impact the targeted sales price and the associated tax considerations.
A BOV is not as detailed as a formal business valuation but can still provide valuable insights. However, it is important to distinguish a formal business valuation and a broker’s opinion of value.
Business Valuations by Accredited Valuation Professionals
A formal business valuation is typically prepared by a certified business appraisal professional. The most common business appraisal certifications that are accepted by bank lenders and other third-parties include the CVA and CBA.
So why go through the time, effort and expense of getting a formal appraisal from a CVA or CBA rather than a BOV from a business broker? The most common reason is to satisfy the requirements of SBA financing (see our resources tab for more information about SBA financing).
Business sellers benefit because when a business is pre-qualified for SBA financing up to a specific amount, it makes the business more attractive to a larger pool of buyers who can now afford the purchase of the business due to the lower required cash down-payment. The pre-qualification is based completely on the business being sold. The prospective buyer will still need to qualify to get the SBA loan to purchase the business. Buyer qualifications include a satisfactory credit history, management expertise in the business, completion of a SBA personal financial statement and the ability to personally guarantee the SBA loan.
Contact your local Sunbelt office to learn more about the benefits of obtaining a certified business appraisal.
Other Types of Valuation Services
As a business brokerage firm, most of our valuation services are provided in conjunction with business sales and acquisitions. However, some of our offices do provide other forms of asset valuation services. By way of example, banks and other lenders frequently require asset appraisals in conjunction with loans that are primarily collateralized by specific assets. Machinery and Equipment loans and appraisals are a common example. By way of example, the U.S. Small Business Administration (SBA) often requires a machinery and equipment appraisal for a loan application. The SBA has its own criteria for these appraisals, but general guidelines include: (a) The appraisal must be completed by a certified, independent appraiser who has inspected the equipment on-site. (b) An appraisal will be required when the equipment is being purchased from someone other than an equipment dealer, the equipment is being refinanced, the SBA loan is more than $250,000, there is a close relationship between the buyer and the seller and/or the business relies heavily on its equipment. The appraisal must be dated within 12 months of the loan application date.
Have questions about valuation services? Please contact your local Sunbelt office to speak with a valuation professional.
Why Trust Sunbelt for Business Appraisals?
Sunbelt is a leader in business valuation and appraisal services near you. With years of experience and deep industry knowledge, we bring a thorough understanding of the local market and current market dynamics impacting business values today.
Additionally, we prioritize confidentiality in all of our relationships. Our team will ensure that your business appraisal and financials are handled with the utmost discretion, giving you peace of mind throughout the process.
By choosing Sunbelt Business Brokers for business appraisal services, you can rest assured that you have some of the most experienced advisors putting their experience to work for you. We remain dedicated to delivering accurate, insightful business valuation services tailored to your business’s needs.
Ready to get started? Contact your local business intermediary about your business appraisal needs and goals for your business!