ServicesBusiness Valuation
Business Valuation in Leander
Before you sell, bring in a partner or plan an exit, you need a number you can stand behind. We review your financials, show you how buyers will see them and give you a written opinion of value. It is free and kept confidential.
What a valuation tells you
A valuation is our opinion of what a qualified buyer would likely pay for your business today. It starts with what the business really earns for its owner, then compares that to what similar businesses have sold for.
Most owners have a number in their head. Sometimes it is close. Often it is based on revenue, a friend's sale or what they need to retire. Buyers and lenders look at cash flow, risk and how much the business depends on you. We put those same lenses on your numbers so there are no surprises later.
You get the result in writing, with each adjustment and assumption spelled out. If you decide to sell, that same document becomes the base for pricing your listing, which we cover on our Sell a Business page. If you are not ready, it gives you a clear list of what to fix first.
What our valuation covers
- Recast earnings
- We rebuild your profit and loss to show seller's discretionary earnings. That means adding back your salary, personal expenses run through the business and one-time costs, so a buyer sees the true cash flow.
- Market comparison
- We look at what businesses in your industry and size range have actually sold for. Multiples vary a lot by trade, so we use sales that match yours, not a general rule of thumb.
- Assets and inventory
- We list equipment, fixtures and inventory and note what is included in a sale. Worn or outdated equipment is called out plainly.
- Risk review
- Customer concentration, owner dependence, lease terms and staff turnover all move the price. We tell you which ones are helping and which are holding the number down.
- A written report
- You get a written summary with the value range, how we got there and the factors behind it. Nothing is left as a verbal guess.
When it is time to get a valuation
A sale is on your horizon
A sale that is still a few years off benefits from a number today. It points to the weak spots worth cleaning up before buyers start asking questions.
Someone made you an offer
An offer out of the blue might be fair, or it might be well short. With a written value in hand, you can reply with facts, not a hunch.
A partner is ready to leave
Buyouts run smoother when both partners work from one agreed, written figure. Much of our Partner Buyouts and Succession work starts at this step.
Personal costs run through the books
A company truck, a family phone plan or meals on the business card make your tax return show less profit than you really earn. Recasting the numbers brings the true earnings into view.
Retirement depends on the business
When the sale needs to fund your retirement, guessing is not good enough. The value shapes how long you have and what to work on, which is where Exit Planning picks up.
How the valuation works
- 1
A short phone call
We talk about your business, your goals and your timeline. We also explain exactly what we will look at and what you will get back.
- 2
You send your documents
Usually three years of tax returns, profit and loss statements and a current balance sheet, plus an equipment list and your lease. Everything stays confidential.
- 3
We do the analysis
We recast earnings, check comparable sales and review risk factors. If something is unclear, we ask you instead of guessing.
- 4
We walk you through it
We meet at our office or by phone or video and go line by line through the written report. You can push back on any add-back or assumption.
What it costs and what moves the value
The valuation is free, and there is no retainer. You owe nothing for it, and you are not signed up for anything. What does change from one business to the next is the value itself, and these are the things that move it most.
- Cash flow you can prove
- Buyers pay for earnings backed by tax returns and clean books. Cash that never made it onto the books is very hard to count.
- How much it depends on you
- If customers call you by name and you hold every key relationship, buyers see risk. A trained manager or written systems raise the value.
- Customer concentration
- When one or two customers make up a large share of sales, losing either one changes everything. A spread-out customer base is worth more.
- Lease and location
- A long, transferable lease at a fair rent helps. A lease ending soon with no renewal option can scare off buyers and lenders.
- Trend and industry
- Growing revenue over three years reads very differently from flat or falling sales. Some industries also trade at higher multiples than others.
Business valuation questions
Something not covered here? (512) 402-2581
Is the valuation really free?
Yes. There is no charge and no retainer. We do this because many owners who get a valuation later decide to sell, and we would rather start that conversation with honest numbers.
Do I have to list with you afterward?
No. The report is yours to keep. If you choose to sell later, we can use it to set your asking price, but there is no obligation.
Will my employees or customers find out?
Not from us. We work from your documents and talk only with you unless you tell us otherwise. Calls and meetings can be set up away from your business, at our office or over video.
How long does it take?
Most of the time depends on how fast your documents come in. Once we have complete financials, we can usually review them and set up a walkthrough soon after. We will give you a realistic timeline on the first call.
Is this the same as a formal appraisal?
No. It is a broker's opinion of value based on market sales and earnings. Some situations, like certain lender requirements, estates or court matters, call for a formal appraisal, and we will tell you if yours looks like one of them.
Do you value businesses outside Leander?
Yes. We work with owners in Cedar Park, Round Rock, Georgetown, Liberty Hill and nearby towns. Your documents can come to us electronically and the walkthrough can be on a video call, so an owner an hour away gets the same review as one down the street.
Find out what your business is worth
A short call is all it takes to get started. We will explain what we need, keep it confidential and put the result in writing.