CGK Business Sales

Austin Business Brokers | Texas Mergers and Acquisition Experts

  • Austin Business Brokers
  • Business Valuation
  • Buy A Business
  • Selling A Business
  • Blog
    • Business Valuations
      • Sell A Business
      • Business Brokers
      • Mergers and Acquisitions
      • Selling My Business
        • Sell My Business – Austin
        • Business For Sale
        • Small Business Sales
        • How To Sell A Business Austin TX
        • How To Sell A Business
        • How To Sell A Company
        • Brokers And Sellers
        • Business Acquisitions
        • Austin Texas Business Opportunities Travis County
        • Hays County
        • Williamson County
        • Business Brokers Austin TX
        • Business Consulting Austin
        • Business Sales
        • Businesses For Sale By Owner
        • Creating Value
        • How To Sell A Company
        • How To Sell Your Company
        • Sell Businesses
        • Sell Your Business
        • Selling A Company
        • Selling A Small Business
        • Selling Business
        • Selling My Business
        • Selling Your Business
      • If You Use Any Of The Other Austin Business Brokers…
      • Business Broker
        • Find A Business Broker
        • What Is My Business Worth
          • Business Brokers San Antonio
          • Small Business Brokers
          • Austin Business Broker
          • Austin Brokers
          • Business Broker Austin
            • Business Realtor
            • Business Agent
    • Mergers & Acquisitions
      • M&A
        • Business Acquisition
        • M & A
        • Merger And Acquisition
        • Company Acquisition
        • Austin Mergers And Acquisitions
          • Small Business For Sale
          • Small Business Opportunities
          • Small Business Opportunity
            • Due Diligence Checklist
          • Businesses For Sale
            • Texas Business For Sale
            • Buying An Austin Business
            • Austin Business For Sale
            • Businesses For Sale in Austin
            • Local Businesses For Sale
            • Franchises For Sale
            • Franchise For Sale
            • Franchises
            • Companies For Sale
            • Businesses Austin
            • Businesses For Sale in Austin TX
            • Business For Sale Austin TX
            • Business For Sale San Antonio
            • Business Opportunity
            • Business Opportunity
            • Business Opportunities
            • Franchise Opportunities
            • Business For Sale in TX
            • Buying An Austin Business
            • Businesses For Sale in Austin TX
            • Constant Contact Archive
            • Axial Markets
            • Seeking Alpha
            • Austin Chamber of Commerce
            • businessbroker.net
            • Better Business Bureau
  • Team
  • Contact Us
Home » Business Valuation

Business Valuation

To do a proper business valuation for your business, three things are needed.  We will need your last three years of profit and loss statements (also known as income statements), your business tax returns, and balance sheets from that time period.  For lower-middle market businesses, we also like to see a statement of cash flows.  Why do we need this?  We need to see the revenue trend, the run rate for the business this year, and how much cash flow the business is generating.  This can be through an EBITDA calculation or from a version of owner’s cash flow or seller’s discretionary earnings (SDE).

Once we have a good sense of what the business is doing, we can get a good business valuation for an Austin Texas or San Antonio company.  This information will be kept confidential from buyers until the due diligence process begins.  Due diligence usually begins with a letter of intent or an indication of interest in an auction process.  How do you improve that valuation?  In a quick sense, the revenue trend must be up, the industry must be a growth industry, and earnings must also be headed in the right direction.

Buyers want repeatable cash flows.  Assignable contracts, works in progress, or any other way that ensures a buyer that the business will not collapse following closing is helpful.  This could simply be a solid sales and marketing plan.  Any of these characteristics will help enormously in the business valuation and due diligence process.  Other reinforcing signals for buyers include a layer of management that does not include the owner.  Having a sales force, sales manager, or operations manager, that helps ensure that the business will continuously function following the close will only help your business valuation.  A business seller must put themselves in the place of the business buyer.  What will the buyer want to see?  If you can answer these questions from the buyer’s eyes, it will help your business valuation as a seller.

Share this:

  • Email
  • Print
  • Twitter
  • Pinterest
  • Facebook
  • Facebook
  • Twitter

RSS Business News from Entrepreneur

  • I'm the Head of Talent at Deloitte U.S. Here Are the Top 3 Things I Look for in a Job Candidate and My Favorite Interview Question.
    His team gets more than two million applications a year.
  • Influencer's Team Speaks Out After Being Slammed For Selling Instagram DMs for $10,000: 'False and Inaccurate'
    Emma Chamberlain's merchandise website went viral after one fan noticed a particularly pricey offering.
  • How This Innovative Technology is Making Healthcare More Affordable and Accessible
    As part of telehealth, mHealth can improve the healthcare system by increasing access to care, improving communication and saving money for patients and providers.
  • Lab-Grown Poultry Is Closer to Being Sold in the U.S. as One Company Passes 'Crucial Step'
    The products are made from animal cells.
  • 3 Considerations for Driving B2B Business in the Order-to-Cash Process
    If the payment strategy doesn't keep up, the entire order-to-cash process sinks. Here's why.
  • 5 Winning Habits That Will Transform Your Leadership Skills
    Ready to take your leadership skills to the next level? Discover the five winning habits that will transform you into an exceptional leader!
  • The Anatomy Of A Franchise Disclosure Document
    Here's a break down your most tedious -- and valuable -- franchise research tool so you understand the ins and outs before signing.
  • Elon Musks Weighs in on Fed's Crucial Decision to Raise Interest Rates
    The U.S. Federal Open Market Committee announced that it would be raising baseline interest rates on Wednesday afternoon.
  • Network Infrastructure Is the Backbone of Any Organization Today. Here's How Small Businesses Can Manage It Effectively.
    A reliable and efficient network infrastructure is essential for maintaining business continuity and staying competitive in the market.
  • 6 Tips for Building a Business Growth Mindset in Adolescents
    Here are a few tips for nurturing entrepreneurial and growth mindsets in adolescents.

Contact Us

CGK Business Sales

401 Congress Ave

Austin, TX 78701

phone: (512) 900-3770

website: https://businessbrokersaustin.com

Copyright © 2023 · Enterprise Pro Theme on Genesis Framework · WordPress · Log in