At Sorren, we believe a strong valuation isn’t just a document; it’s a foundation for smarter business decisions, seamless transactions, and effective planning.
Reliable valuations are essential for proper reporting, fair transactions, and strategic growth. We take the time to understand your company’s distinct needs, analyzing both financial performance and market conditions to deliver insights that matter to your specific situation. Whether you’re preparing for a purchase or sale, seeking investment, managing equity compensation, planning for succession, or strategizing gifting, our Business Valuation Solutions provide the clarity you need to confidently make informed decisions.
By collaborating closely with you throughout the process, we uncover the true drivers behind the numbers to deliver actionable insights, not just figures. Our independent, objective analysis gives you the confidence to make critical business decisions that protect and increase your company’s value.
At Sorren, we don’t just crunch numbers; we dig deeper. We analyze your company’s financial and operational performance, evaluate market trends, and assess future cash flow potential, considering the time sensitivity of valuations and the complexities of ownership structures. Whether you’re facing regulatory scrutiny, audit defense, or a critical transition, our comprehensive valuation solutions are designed with your specific goals in mind, offering cost-effective solutions to meet your needs.
Estate, Trust, & Gift
Defensible valuations for estate, trust, and gift tax planning—supporting compliance, strategic wealth transfer, and long-term goals.
Financial Reporting
Reliable reporting that provides clarity, supports compliance, and instills trust in strategic decision-making.
Option Pricing Models
Precise option pricing models that deliver clear, accurate insights for managing equity compensation and award strategies.
Transition Planning
Valuation guidance for strategic ownership transitions to internal team members or external investors, ensuring long-term business success.
Portfolio Valuations
Comprehensive portfolio valuations to help assess and optimize the value of investments and holdings.
ESOP Valuations
Accurate assessments for employee stock ownership plans, helping companies navigate ownership transitions.
Personal Goodwill Valuations
Identification of the separate components of intangible value tied to personal goodwill through analyzing the owner’s reputation, skill, and business relationships.
A business valuation can take months to complete due to reviewing 5+ years of financials, assessing growth potential, modeling future earnings, and developing appropriate valuation methodologies. It is much more complex than a straightforward real estate appraisal.
In addition to multi-year historical financial statements, several supplemental questions must be answered by management to clarify and expound on the numbers presented in order to accurately model future performance. Access or lack of access to accounting personnel, or delays in providing information, can delay our ability to timely complete the valuation.
Valuators need meaningful engagement with management over several weeks to ask probative questions, better understand operations and performance, assess leadership’s capabilities, and stress test assumptions. Our ability to have these conversations in a timely manner can impact our completion date.
From tangible assets like inventory and equipment to intangible assets like goodwill, customer lists and patents, each asset must be valued separately and then considered as part of the overall valuation.
Gaining transparency into any personal expenditures running through the business provides helpful context without judgement towards historical tax planning and helps complete a fulsome financial picture.
While book value depends on original asset acquisition costs, market value aims to establish current worth based on integration potential, expected cash flows, and perceived competitive advantages – hence, the divergence over time between the two.
As new financial results emerge, market conditions shift, risks materialize, and investor preferences change, valuations need to be re-assessed perhaps even quarterly or annually in some cases.
Though harder to quantify precisely than tangible assets, understanding and properly valuing brand identity, intellectual property, patents, data, and culture can tremendously impact valuation given their income generation potential.
Forward-looking “fair value” projections depend heavily on leadership capability, total addressable market dynamics, new product pipelines, and other factors besides just historical financial growth trends.
Valuations are always performed for a specific purpose, at a specific time. Changing one of these could possibly change the value of the
company. This is why our valuation report should not be used for any other purpose than what is stated in the valuation, nor should it be relied upon by a third party not part of the original purpose or our engagement letter.
Let us connect you with one of our partners to start a conversation, the first step in uncovering what matters most to you.