ServicesBusiness Valuation
Business Valuation in Cedar Park
We estimate what a qualified buyer would likely pay for your company, and every step of the math is on paper. We recast your earnings, weigh the risks a buyer will notice and explain the range in plain terms. There is no charge, and nothing you share leaves our office.
Why Owners Get a Number Before They Decide
For a small or mid-sized private company, value rests on two measurements: the cash the business reliably hands its owner each year, and how much risk a buyer attaches to that cash continuing. Your tax returns and profit and loss statements tell us the first. Your customer list, lease, staff and bookkeeping tell us the second.
Owners usually reach out when a sale, retirement or partner change is on the horizon, even if it is years away. An early valuation points to the items dragging the number down while there is still time to address them. If listing is close, the same work sets the asking price described on our Sell a Business page.
We do not pad the figure to win a listing. An inflated price costs you months on the market and usually ends in a cut, so we give you the range we can defend to a buyer, a lender and the buyer's accountant.
What Goes Into Our Valuation
- 01
Recast of your earnings
We rebuild three years of financials into seller's discretionary earnings (SDE) or EBITDA, depending on the size of the business. That means adding back your salary, personal vehicle and phone costs, one-time expenses and non-cash items like depreciation. Every add-back is listed so a buyer can trace it to a line on your return.
- 02
Market multiples from comparable sales
We measure your business against recorded sales of companies with similar revenue and industry. Multiples swing a lot by sector: a firm with recurring maintenance agreements tends to sell on different terms than a store carrying months of stock. We name the comparables we relied on and explain why they fit.
- 03
Asset review
We separate furniture, fixtures and equipment, inventory at cost and any real estate from the goodwill value. Buyers and lenders treat each one differently, and blending them is a common reason deals stall.
- 04
Risk factors a buyer will flag
Customer concentration, owner dependence, a short lease, thin records and falling revenue all lower what a buyer will pay. We name the ones that apply to you and estimate how far each moves the range.
- 05
A written summary you keep
You get the value range, the recast earnings, the multiple applied and the reasoning behind each adjustment. It is yours to use whether or not you ever list with us.
Questions about Business Valuation?
Call(512) 881-7156Signs It Is Time to Get Your Business Valued
You have an exit date in mind
Retirement, relocation or a new venture within the next one to five years is the best time to learn your number. Some fixes, like reducing reliance on one customer, take a year or more to show up in the financials.
Someone made you an unsolicited offer
A competitor or employee asking to buy you out is not a valuation. Without your own number, you cannot tell a fair offer from a low one.
A partner wants out
Buyouts go far more smoothly when both sides start from an independent figure. Our Partner Buyouts and Succession work begins here.
Your books mix business and personal spending
If your return shows little profit because personal costs run through the company, the true earnings are hidden. A recast shows what a buyer would actually take home.
You are planning a large investment
Before you sign a new lease, buy equipment or open a second location, it helps to know how that spending will affect what the business is worth at exit.
How a Valuation Works With Us
- 1
Confidential first conversation
We talk by phone about your business, your timeline and what you need the valuation for. Nothing about you or your company leaves that conversation.
- 2
You gather the paperwork
The usual set is three years of federal returns with matching income statements, a recent balance sheet, the lease or a summary of its terms, and lists of equipment and stock on hand. Missing a year is fine; we will tell you how it affects the result.
- 3
We recast and compare
We build the adjusted earnings, choose comparable sales and apply a multiple. If something in your records is unclear, we ask rather than guess.
- 4
We review the result together
You choose the setting: our office, a phone call or a video session. We take each figure in the range in turn, showing which factors lifted it, which pulled it down, and what you could change before a sale.
The Cost, and the Factors That Shift Your Value
A valuation is free and stays confidential. You will not pay retainers or hidden fees, today or if you decide to list. What changes from one company to the next is the value, and for owner-run businesses a few factors move it the most.
- Quality of earnings
- SDE that holds steady or rises over three years supports a better multiple than one good year following two poor ones. Buyers pay for cash flow they expect to last.
- Owner dependence
- If every client relationship, supplier call and pricing choice runs through you, a buyer fears the company will slip after you leave. Documented procedures and a capable manager lift the value.
- Customer concentration
- If a single client accounts for a big slice of revenue, losing that account after closing could cripple the business. Buyers lower their price for that risk, and lenders often follow.
- Lease and location terms
- A lease with plenty of term left and the right to transfer backs up the price. A lease that ends soon, or a landlord who refuses to assign it, can kill a deal outright.
- Record quality
- Tidy, reconciled books that agree with your tax returns allow a buyer's lender to approve the loan. Cash sales that never made it into the records do not count, no matter how real they were.
Questions About Valuing Your Business
Is there a charge for the valuation?
No. Every valuation is free and kept confidential. Should you choose to sell later, listing with us costs nothing up front. We collect our fee only at closing, since we are paid only when the seller is. There are no retainers or hidden fees at any point.
Why doesn't your figure match what I had in mind?
Many owners multiply revenue or the net profit on their tax return, while buyers set prices from recast earnings and risk. We lay out each adjustment so the source of the difference is clear. If an add-back or risk factor looks wrong to you, we will go over it together.
Will anyone find out I asked for a valuation?
No one. While we work on a valuation, we do not contact your employees, suppliers, landlord or customers. Your records stay in our hands, and all conversations take place at our office or over phone and video.
Is this the same as a formal appraisal?
Our valuation estimates what a buyer in the market would probably pay, and it is meant for decisions about selling or exiting. Some matters, such as certain court cases or estate filings, may require a formal appraisal by an independent appraiser. If yours appears to be one of them, we will say so.
Am I obligated to sell after a valuation?
No. Plenty of owners use it for long-range planning or as the first step in Exit Planning. The written summary is yours to keep no matter what you decide.
Put a Real Number Behind Your Next Decision
The first step is a short, private phone call about your financials and your timing. We will list the documents we need and explain how the range gets built.