ServicesBusiness Valuation
Business Valuation in Liberty Hill
Find out what your company is worth to an actual buyer, not what a rule of thumb suggests. We recast your earnings, weigh the risks a buyer will price in and give you a range you can plan around, years before you need it.
A Price Built From Your Numbers
Most owners carry a number in their head. Often it comes from a friend's sale or a multiple heard at a conference. Buyers do not pay for that number. They pay for the cash flow they can verify, adjusted for the risk of keeping it after you leave.
Our valuation starts with your tax returns and profit and loss statements, then normalizes them. We add back one-time costs, personal expenses run through the company and owner pay above or below market. The result is seller's discretionary earnings for smaller companies, or adjusted EBITDA for larger ones. That figure, multiplied by what comparable businesses have actually sold for, sets the core of the range.
Doing this early matters. If the valuation shows a weak spot, such as one customer making up a third of sales, you have time to fix it before a buyer's due diligence finds it and cuts the offer.
What Your Valuation Covers
Financial recast
We rebuild three years of financials line by line and document every add-back. Buyers and lenders will question each adjustment, so we only keep the ones you can support with records.
Market comparison
We compare your earnings multiple with closed sales of businesses in your industry and size range. Asking prices are ignored because they show hopes, not deals.
Asset review
Furniture, fixtures and equipment, inventory at cost and any real estate are listed separately. This matters for asset-heavy companies and for how the purchase price gets allocated at closing.
Risk and transferability check
We look at owner dependence, customer concentration, lease terms and whether key contracts can be assigned. Each one moves the multiple up or down.
Financing test
Most small business acquisitions use SBA-backed loans. We check whether your cash flow can cover a buyer's debt service at the value we propose, because a price no lender will finance rarely closes.
When a Valuation Is the Right Call
- You plan to exit within five years
- That is enough time to raise the value, not just measure it. Pair it with our exit planning work if you want a step-by-step plan.
- Someone made an unsolicited offer
- Before you answer, you need to know whether the offer is fair. A valuation tells you what the market would likely pay if you listed openly.
- A partner wants out
- A buyout needs a price both sides accept. An independent, documented figure keeps the conversation about numbers instead of feelings.
- Your growth has outpaced your records
- Fast-growing companies around Leander and Georgetown often have books that lag reality. A recast shows what the business earns today.
- You are weighing a big investment
- Adding a location or new equipment changes the value. Knowing your baseline helps you judge whether the spend will pay back at sale.
How the Valuation Works
- 1
A confidential first call
We talk through your business, your timeline and why you want a value. Nothing you share leaves our office, and your staff does not need to know.
- 2
Gather the documents
We ask for three years of tax returns and P&Ls, a current balance sheet, your lease, an equipment list and any major customer or supplier contracts. Missing items are fine; we note them as risks.
- 3
Recast and compare
We normalize your earnings, pull comparable sales and run the financing test. Each assumption is written down so you can see how we reached the figure.
- 4
Review the range together
We walk through the result at our office or by video. You get a value range, the factors pushing it up or down and the specific steps that could raise it.
What Moves Your Valuation
The valuation itself costs you nothing; we offer free, confidential valuations. What deserves your attention is what moves the number. These are the factors buyers price most heavily.
- Quality of earnings
- Clean, consistent books with documented add-backs earn a higher multiple. Cash sales that never hit the records cannot be counted, no matter how real they are.
- Owner dependence
- If customers call you by name and you hold every vendor relationship, the buyer is purchasing a job, not a company. A trained manager in place raises value.
- Customer concentration
- When one client supplies a large share of revenue, buyers discount for the chance of losing it. Diversified, recurring revenue does the opposite.
- Lease and location terms
- A short lease or one the landlord can refuse to assign puts the whole deal at risk. Several years of remaining term with renewal options supports a stronger price.
- Industry and trend
- Three years of rising revenue sells better than a flat or falling line. Sector demand also shifts the multiples buyers will accept.
Business Valuation Questions
- Why is the valuation free?
- Because it is how we start working with business owners who may later sell. We Only Get Paid When The Seller Does, so our income comes from closed deals, not from reports. There are no retainers and no hidden fees.
- Do I have to list my business with you afterward?
- No. Many owners get a valuation, work on the weak spots for a year or two and come back when ready. Some never sell. The number is yours either way.
- Can I use your valuation for the IRS, a court case or an estate?
- It is not designed for those uses. What we prepare reflects market value from a broker's seat, grounded in what buyers in your industry have paid for similar companies. Tax filings, divorce or estate matters and some lenders call for a certified appraisal by an independent appraiser. If your situation points that way, we say so during the first call.
- How do you keep it confidential?
- We work from documents you send directly to us and meet at our office or by video, never at your place of business unless you ask. Your employees, customers and competitors have no reason to learn a valuation took place.
- What if my books are messy?
- That is common and it is not a dead end. We work with what you have, flag where records are thin and show how much value cleaner books could add. Getting a year of clean financials before you sell is often the single best step.
- How long does it take?
- Mostly it depends on how quickly the documents come together. Once we have the returns, P&Ls and lease, the recast and comparison move steadily, and we schedule the review as soon as the range is solid.
Know Your Range Before Anyone Asks
A valuation now gives you time to raise the number instead of just accepting it. Owners from Liberty Hill to Cedar Park start with one confidential conversation.