ServicesBusiness Valuation
Business Valuation in Leander
Before you sell, plan an exit or bring in a partner, you need a realistic number. We look at your books the way a buyer and a lender would, then walk you through what your business is worth and why, in plain English.
A figure you can put to work
A business valuation is our view of what a qualified buyer would probably pay for your company in the current market. We base it on your actual earnings, your assets and recent sales of comparable businesses, not on a hoped-for figure or a friend's sale from years back.
Owners usually reach out at one of three points: a sale may come in the next year or two, a partner wants to leave, or they just want to know where they stand. The valuation costs nothing and stays confidential. No one finds out you asked, not your staff, your customers or your competitors.
You come away with a figure, a range around it and a plain account of what is keeping the number down. Many owners use that list to make a few changes and sell later for more.
Inside your valuation
- 01
Adjusted owner earnings
Tax returns aim to keep the tax bill low, so they seldom show true earnings. We add back your salary, owner perks and one-time expenses to arrive at seller's discretionary earnings, the number most small-business buyers begin with.
- 02
Comparable sales
We line your business up against recent sales of similar companies by industry and size. That reveals the earnings multiple buyers really pay, rather than a rule of thumb.
- 03
Equipment, inventory and property
We list and value equipment, vehicles, inventory and any real estate on their own, so it is clear what the price covers and what it leaves out.
- 04
How a lender sees it
Most buyers borrow for part of the purchase. We test whether your cash flow can carry the loan payments a bank would want, since a price no lender will back seldom closes.
- 05
A clear walk-through
We review the results with you at our office, by phone or by video. Each assumption is explained, and any line is open to questions.
Questions about Business Valuation?
Call(512) 883-6802Signs it is time for a valuation
You are thinking about retiring
A sale three or four years out is the ideal time to learn your value, because there is still room to improve it before buyers start looking. The figure also feeds straight into your retirement budget.
You got an unsolicited offer
A competitor or investor calls with a figure. Without a valuation, you cannot tell whether it is fair, low or a fishing expedition.
A partner wants out
Buyouts go far smoother when both sides start from an independent number instead of two opinions.
Your numbers have changed a lot
Strong growth, a big new contract or a rough year can all move your value. A fresh look shows where you stand now.
You simply do not know
Plenty of owners have no idea what their company would sell for. That is a perfectly good reason to ask.
The steps, one at a time
- 1
A brief first call
You describe the business and why you are asking. We explain what we will need and answer any questions about confidentiality.
- 2
You send the financials
Typically that is three years of tax returns, recent profit and loss statements and a list of equipment and inventory. All of it stays private.
- 3
We run the numbers
We recast your earnings, study comparable sales and check the price against typical loan terms. When something is unclear, we ask instead of guessing.
- 4
We go over the results
You see the value, the range and the reasons for both. We also show what would raise the number and what would not change it.
No charge for the valuation. What changes the number
The valuation is free, and you are under no obligation to list with us afterward. Owners mostly want to know what pushes value up or down, so these are the factors buyers look at hardest. Learning them early leaves time to improve the ones within your control.
- Earnings on the books
- Buyers and lenders pay for profit they can check. Cash that never shows up in the records cannot be counted, no matter how real it is.
- Reliance on the owner
- When customers, suppliers and key decisions all run through you, buyers see risk and bid lower. A trained manager or written procedures can change that.
- A few big customers
- If one client supplies a large share of revenue, losing them would hurt the next owner. A broad customer base is worth more.
- Your lease and location
- A long lease that can transfer gives a buyer security. One ending soon without a renewal option can cut the price or stall the deal.
- Direction and industry
- Steady or growing revenue earns a higher multiple than a decline. Your industry counts too, because some fields simply attract more buyers.
Questions about valuations
Is your valuation a certified appraisal?
No. It is a market-based opinion of what buyers would probably pay, which is what most sellers need to price a listing. Courts, estates and some lenders call for a formal appraisal from a credentialed appraiser, and we will tell you plainly if you need one.
Will anyone know I asked?
No. The whole valuation is confidential. We do not reach out to your employees, customers or landlord, and your financials stay with us.
If I get a valuation, must I list with you?
No. Plenty of owners get a valuation and then wait, grow the business first or keep it. If you do sell later, listing with us costs nothing up front, with no retainers and no hidden fees. Our fee comes from the sale, so we are paid only when the seller is.
How close will the number be?
It rests on your actual earnings and on what similar businesses have really sold for, so it should fall near real offers. Our track record of over $5 million in businesses sold informs the range we give you. The final price still turns on the buyer, the terms and the financing.
My books are messy. Can I still start?
Yes, that happens a lot. We will point out what is missing and how much it matters. Tidying the records before a sale is often among the simplest ways to raise your price.
Find out what your business is worth
A short call gets the process started, with no cost and no pressure to list. If selling is on your mind, our Sell a Business and Exit Planning pages explain what comes next.