ServicesBusiness Valuation
Business Valuation in Bastrop
We work out what your business is likely to sell for, using your tax returns, profit and loss statements and the deals buyers actually close. You get a clear range, the reasoning behind it and a plain view of what would raise it. The valuation is free and kept confidential.
What goes into a sound valuation
A valuation is only as good as the material it is built from. We start with three years of tax returns and financial statements, then recast them to show seller's discretionary earnings. That is the cash flow a single owner-operator actually takes home once one-time costs, personal expenses run through the business and the owner's salary are added back.
From there we weigh the methods against each other. A multiple of earnings suits most service and retail businesses. Asset value matters more when equipment, vehicles or inventory carry the deal. Comparable sales show what buyers paid for similar businesses. Each has trade-offs, and we explain why we lean on one over another for yours.
Owners come to us before listing, before a partner buyout, or simply to know where they stand. It is the right call any time you need a number you can defend to a buyer, a lender or a partner.
What your valuation includes
- Recast financials
- We rebuild your profit and loss to show true owner earnings. Every add-back is listed with its source, so a buyer's accountant can follow it line by line.
- A comparison of methods
- We run earnings-based, asset-based and market-comparable approaches where they apply. You see where they agree, where they differ and which one carries the most weight for your business.
- Asset and inventory review
- Equipment, vehicles, fixtures and stock are noted at realistic resale value, not original cost. Aging equipment that will need replacing soon is flagged, because buyers will flag it too.
- Risk factors in plain terms
- Customer concentration, a short lease, heavy owner dependence and slipping margins all pull a multiple down. We name the ones that apply to you.
- A written range and a walk-through
- You receive a value range with the reasoning behind it. We go through it with you by phone, by video or at our office.
When a valuation makes sense
You plan to retire in a few years
Learning the figure early leaves time to improve it. Tidier books and a longer lease can raise value more than another year of sales.
Someone has offered to buy
It is hard to weigh an offer you did not seek without something to compare it to. A valuation shows whether it is a real offer or a low first bid.
Partners cannot agree on value
A neutral figure with documentation gives a buyout talk a fair place to start. See our Partner Buyouts and Succession page for the next steps.
You want a loan or new investors
Lenders and investors expect a value backed by records rather than an owner's guess.
Business and personal expenses overlap
Many owner-run companies do this. It masks true earnings, and recasting reveals what a buyer would really be getting.
What drives the value, and the effort to reach it
You pay nothing for the valuation, with no retainer and no hidden fees. What changes is how much work it takes to land on a firm figure and which factors push that figure higher or lower. These carry the most weight.
How well your books are kept
Statements prepared by an accountant lead to a quicker, tighter valuation. Cash-heavy or loose records take longer to sort out and usually make the range wider.
How much depends on you
When customers, vendors and employees all count on you personally, buyers lower the price for the chance of losing them in the transition. Written systems and a strong manager shrink that discount.
Your lease or property
A lease that can transfer and has years left helps value. If the building is yours, we can review it together with the business, as our Business and Property Sales page explains.
Your industry and similar sales
Multiples vary a lot from one industry to the next. An HVAC company, a restaurant and a franchise resale are each compared with different past deals.
Where earnings are heading
Three years of steady or growing earnings support a better multiple than a single strong year after two flat ones.
How a valuation runs
- 1
A confidential first call
We talk about the business, your goals and your timing. Nothing is shared with anyone, and there is no obligation.
- 2
Gathering the records
We ask for three years of tax returns, year-to-date statements, your lease, an equipment list and any key contracts. If something is missing, we tell you exactly what and why it matters.
- 3
Recasting and analysis
We normalize earnings, test the methods against each other and check sales of similar businesses.
- 4
Reviewing the range together
We walk through the figure, the add-backs and the risks we found. Then we point out the changes most likely to raise value before a sale.
What owners ask about a valuation
Is the valuation really free?
Yes. You pay nothing for it, sign no retainer and find no fee tucked in later. If you go on to list with us, nothing is due up front then either. We are paid only when the seller is.
Will anyone find out I am thinking about selling?
No. What you share and what we discuss stay private. While we work on the valuation, we never contact your employees, customers, vendors or any buyer about the business.
Is this a formal appraisal?
No. It is a broker's opinion of market value, drawn from what buyers have paid for comparable businesses. Some situations, such as estate filings, certain loans and court cases, call for a formal appraisal from a credentialed appraiser. If yours does, we will say so at the start.
What if the number is lower than I hoped?
That does happen, and it is better to learn it from us than from buyers. We show which factors are pulling the value down and which ones are within your power to change. From there you decide whether to sell now or prepare first through Exit Planning.
Do I need to come to your office?
No. We can meet at our office, by phone or by video, and we work with owners in Elgin, Smithville and the surrounding area. You can send your records securely without coming in.
How long does a valuation take?
Most of the timing rests on how quickly your records arrive. After we have them, we keep you updated along the way and schedule the review once the work is finished.
Learn what your business is worth
Begin with a private talk about your business and what you have in mind. The valuation costs nothing, and nothing goes further unless you choose.