Business Valuation in Bastrop

What a Valuation Measures and Why It Matters

A business is worth what a qualified buyer will pay for its future cash flow, adjusted for risk. Last year's profit is only the starting point. We look at how that profit was produced, whether it will repeat and what a new owner would have to spend to keep it coming.

That last part is where many owners get surprised. Two companies with the same earnings can sell at very different prices if one runs on equipment near the end of its service life, a lease that expires next year or a single customer who brings in half the revenue. Buyers and their lenders price those risks in, so we do too, and we show you where each adjustment came from.

Most owners call us a year or more before a planned exit, ahead of a partner buyout, or when an unsolicited offer shows up and they want to know if it is reasonable. Free, confidential valuations are part of how we work, and nobody learns you asked unless you tell them.

What Your Valuation Includes

Recast financial statements

We rebuild three years of profit and loss statements and tax returns into seller's discretionary earnings or EBITDA, whichever fits your size. Owner salary, personal vehicles, one-time legal bills and other add-backs are documented line by line so a buyer's accountant can verify them.

Asset and equipment review

We list furniture, fixtures and equipment with age and condition. A truck fleet or kitchen line that needs replacing in two years lowers what a buyer will pay today, because that capital expense comes out of their return.

Earnings durability check

We test how dependable the cash flow is: customer concentration, recurring versus one-off revenue, staff who hold key relationships and how much of the work depends on you personally.

Market multiple comparison

We compare your adjusted earnings against multiples from completed sales of similar businesses in your industry and size range, then explain why yours should sit higher or lower in that band.

Lease and transferability notes

We read your lease terms, assignment clauses and any licenses or contracts that must transfer. A short remaining term or a landlord consent requirement can stall financing, so we flag it early.

A written price range with reasoning

You get a range, not a single number, with the assumptions behind each end. That makes it useful for planning, negotiating and spotting what to fix first.

Signs It Is Time to Get a Valuation

• You have received an offer

  An unsolicited offer may be fair or may be built on your weakest year. A valuation tells you which before you reply.

• Your exit is one to three years out

  That is enough time to clean up add-backs, renew a lease or spread revenue across more customers, each of which can raise the multiple a buyer applies.

• A partner wants out

  Buy-sell agreements often name a price formula that no longer matches reality. A current, documented figure keeps the conversation about numbers instead of feelings.

• Your books mix personal and business spending

  Buyers discount what they cannot verify. If your returns understate true earnings, we show you how much and what records would close the gap.

• You are planning a big capital purchase

  Spending on new equipment or a second location changes both earnings and the asset base. Knowing your baseline helps you judge whether the investment will pay back at sale.

How the Valuation Works

1. 1

   A confidential first call

   You tell us what the business does, how long you have owned it and why you want a number now. We explain which documents we need and sign a confidentiality agreement if you want one.

2. 2

   Document gathering

   You send three years of tax returns and financial statements, a current balance sheet, an equipment list and your lease. We meet at our office or by phone and video, so there is no need to bring anyone onto your premises.

3. 3

   Recast and analysis

   We normalize earnings, review asset condition and lease terms, and score the risks a buyer will focus on. Questions come to you directly, not to your staff.

4. 4

   Review meeting

   We walk through the price range, the add-backs we accepted and rejected, and the two or three changes most likely to move the number. If selling makes sense, we can talk about next steps for Sell a Business or Exit Planning.

What Moves the Price a Buyer Will Pay

The valuation itself costs you nothing. What a buyer will pay depends on how much reliable cash flow they get and what it costs them to keep it flowing. These are the factors that most often push the number up or down.

Quality of earnings

Clean, verifiable books earn a higher multiple. Cash sales that never reach the tax return usually cannot be counted, because lenders will not finance them.

Remaining life of key assets

Equipment, vehicles and leasehold improvements near the end of their useful life mean near-term spending for the buyer. We weigh replacement timing against the earnings those assets produce.

Owner dependence

If customers, suppliers or licenses are tied to you, a buyer sees transition risk. Trained managers and written procedures make earnings easier to transfer.

Customer and revenue mix

Recurring contracts and a broad customer base support a higher multiple than project work concentrated in a few accounts.

Lease and location terms

A long, assignable lease at a stable rate protects the buyer's cash flow. For businesses serving customers around Bastrop, Elgin and Smithville, location access can also matter to the deal.