ServicesBusiness Valuation
Business Valuation in Cedar Park
We look at your tax returns, your recast earnings and the deals buyers are closing today, then tell you what your business would likely sell for and why. The valuation is free and confidential, and the same person walks you through every number.
A number you can plan around
A business valuation is an informed opinion of what a buyer would pay for your company in the current market. It is the starting point for a sale, an exit plan or a partner buyout, and it is often the first thing we do with a business owner who is simply curious.
Most owners carry a figure in their head. Sometimes it is close. More often it is based on gross revenue, a friend's sale or what the owner needs to retire, and none of those are how buyers or lenders think. We build the number the way a buyer would, from cash flow, risk and comparable sales, so you are not surprised later.
One broker handles your valuation from the first call to the final conversation. You will not be handed off to an analyst you never meet, and the person who explains the number is the one who built it.
The pieces behind the number
Adjusted earnings
Our first step is reviewing three years of tax returns alongside your profit and loss statements. From there we add back the owner's salary, personal costs paid through the company and expenses that will not recur. That produces seller's discretionary earnings or adjusted EBITDA, the figure buyers base their offers on.
Comparable sales
We look at what similar businesses have sold for, by industry and size, and the multiples those deals carried. A landscaping company and a dental practice with the same earnings rarely sell for the same price.
Assets and inventory
Furniture, fixtures and equipment, vehicles and saleable inventory are listed and weighed. We note what is included in a typical sale and what usually is not.
Risk review
Customer concentration, owner dependence, lease terms and staff stability all move a multiple up or down. We point out each one so you know which ones you can still improve.
A plain written summary
You receive the range, the method behind it and the main assumptions in writing. Your broker reviews each part with you, over the phone, on a video call or in person at our office.
Good times to get a valuation
A sale is on your mind
Even with a sale two or three years away, learning your value today shows what to fix before buyers begin asking.
Someone made you an offer
Unexpected offers run anywhere from fair to far below value. A valuation lets you answer from the numbers instead of instinct.
A partner wants to leave
A single independent figure keeps buyout talks focused on terms, not dueling opinions. Our Partner Buyouts and Succession work often starts here.
Your results have shifted
Two strong years, a new location or losing a big customer can move value a lot. An old estimate may be out of date.
Your retirement plan needs a number
If selling the company funds your retirement, your planner needs a realistic figure rather than a hopeful one.
How the valuation works
- 1
Start with a private conversation
You tell us what the company does, when you might want to move and what prompted the question. What you share stays between us, and asking for a valuation does not commit you to list.
- 2
You send the financials
Usually three years of tax returns, current year-to-date statements and a list of major equipment. We tell you exactly what we need so you are not gathering paperwork that will go unused.
- 3
We recast and compare
Your broker adjusts the earnings, checks comparable sales and reviews the risk factors. If something is unclear, you get a direct question from the same person rather than a form.
- 4
We walk you through the result
We explain the value range, how we reached it and what would move it higher. From there you decide whether to wait, plan an exit or go to market.
What drives your company's value
The valuation is free and kept private. What differs between companies is the value itself, which depends mostly on the points below. Knowing them early gives you time to work on the ones you can control.
- Earnings you can document
- Buyers and lenders pay for profit they can confirm. Orderly books and tax returns that agree with your statements support a stronger multiple.
- How much rests on the owner
- When customers, suppliers and staff all depend on you personally, buyers see risk. A capable manager or written systems reduce it.
- Who your customers are
- A company that gets a third of its revenue from one client is valued more conservatively than one with many customers.
- The lease
- Buyers want to know they can stay in the space. An assignable lease with several years remaining reassures them, while one ending soon or needing landlord consent to transfer can hold up an offer.
- Your industry and its direction
- Stable or growing revenue in a field buyers favor, such as the service trades and healthcare around Cedar Park, usually brings stronger offers.
Questions about business valuation
Something not covered here? (512) 640-2776
Is the valuation really free?
Yes. Free, confidential valuations are one of the things we offer every business owner who calls. There is no retainer and no obligation to list with us afterward.
Will my staff or clients learn about this?
They will not. Everything happens between you and your broker, using the records you provide and conversations by phone, video or at our office. Nobody on your payroll, customer list or supplier list hears from us while the valuation is underway.
Is this the same as a formal appraisal?
Not quite. Ours is a broker's opinion of value based on how buyers and the market price businesses like yours. Some lenders require a separate independent appraisal before financing a purchase, and we can explain when that tends to apply.
How long does it take?
Most of the timing comes down to how soon your records are ready. After your documents arrive, your broker stays in touch as the work moves along and sets a time to review the result with you.
What if the number is lower than I hoped?
Then you have learned it while there is still time to act. We show you which factors are holding the value down and which ones could realistically change before a sale, often as part of Exit Planning.
Find out where your business stands
One conversation starts a confidential look at your earnings, your risks and your likely sale range. The same broker stays with you from that first call through the final explanation.