The recipient of a bachelor’s degree in finance from Indiana University, Matthew Brunstrum began his career as an advisory services associate with Forum Financial Management, LP. Now specializing in mergers and acquisition services, Matthew Brunstrum works as an advisor with Sun Acquisitions in Chicago, Illinois.
On May 9, 2019, Sun Acquisitions announced that it had successfully facilitated the acquisition of Zircon Precision Products on behalf of CLM Equity Partners. The latter had previously approached Sun Acquisitions to pursue a nationwide search to find and acquire an aerospace parts manufacturer that it could operate.
Zircon Precision Products has been in business for more than 50 years. Based in Tempe, Arizona, the company produces aerospace machinery in support of military and commercial applications and maintains a strong industry reputation.
The nationwide buy-side search was led by Sun Acquisition’s Vice President of Buy Side Services Larry Sanderman, while other members provided advice and support throughout the execution and marketing phases of the process. In addition to aerospace, CLM Equity Partners is interested in acquiring manufacturing companies with a focus in overhaul and repair, precision machining, and assembly and fabrication.
Mergers and Acquisitions advisor Matthew Brunstrum supports buyers and sellers closing transactions involving lower-middle market businesses. In his position with Sun Acquisitions, Matthew Brunstrum helps sellers complete a comprehensive assessment to determine the true value of their business.
The market value of a business is dependent on a myriad of factors, including the valuation of comparable companies and the age of the company. Most small business owners should calculate the following metrics to accurately estimate the value of their business:
Assets: Any asset that a business owns, including real estate, inventory, or patented products, can be applied to the value of the overall business. However, all liabilities, such as standing loans or accounts payable, must be deducted to derive an accurate evaluation.
Maturity: Businesses in new, emerging sectors should be evaluated differently from companies in well-established industries. Sellers should review their revenue from the past several years to determine if there is room for growth or if the company has reached a plateau.
Owner Risk: When a small business changes hands, it can impact the value of the business’s intangible assets, including a loyal customer base or highly-regarded reputation. If a company’s value relies too heavily on the current owner, it may be more prudent to evaluate the business using other tangible metrics.