Business Brokers of Austin, Texas

VR Mergers & Acquisitions / VR Business Brokers located in Austin, Texas

 
What Is Your Austin-Area Business Worth?

Though a full-scope business valuation can cost thousands of dollars, VR Mergers & Acquisitions / VR Mergers & Acquisitions / VR Business Brokers offers a free estimate of the value of your business. Every Central Texas business owner wonders what their business is worth. VR has valued tens of thousands of businesses since 1979. Please contact our Austin office of professional intermediaries and business brokers for a no-obligation estimate of the value of your business.

VR's depth of experience in the Austin area, coupled with a vast knowledge of valuation, will result in an expert opinion of value, delivered in a responsive, timely and efficient manner. VR Mergers & Acquisitions / VR Business Brokers has valued and sold virtually every type of business.

Business Valuations typically depend on several key value factors that include:

  • Cash Flow (measured as EBITDA * or Discretionary Earnings **)
  • Risk
  • Terms of the Sale
  • Industry

Cash Flow
To arrive at the appropriate value for the business an assessment of the cash flow is performed in connection with a financial analysis to determine how a lender might evaluate the transaction. Valuations in the small and lower middle market range generally are driven in large part by lenders. A transaction and presumably a successful sale must provide the buyer with sufficient cash flow to not only service the debt incurred to purchase the business, but also provide a sufficient return that in many cases includes, at least in the small market arena, a livable wage for the new owner.

Risk
The second valuation factor is the level of risk. Factors in this category include:

  • Years in business and with the current owner
  • Profit trend
  • Quality of books and records
  • Franchise membership
  • Brand recognition/ strength
  • Level of competition
  • Dependence on current owner
  • Diversification of customer base
  • Lease length and terms
  • Asset value

Terms of the Sale
This is the one source of value that the Austin business seller can almost completely control. Components of the terms include:

  • Down payment
  • Interest rate
  • Monthly payment
  • Non-compete agreement
  • Seller training of buyer

In most business sales in Central Texas, the seller provides some level of financing to the buyer of the business. With seller financing, the seller receives part of the purchase price at the time of the sale ("the down payment") and the remainder over several years. The buyer uses the cash flow from the business to pay off the debt. Structuring a sale with attractive terms can significantly increase the value of a business.

Industry
Some businesses have a valuation equal to the seller's discretionary earnings (SDE) while other businesses are valued at five (or more) times that amount. An important reason in determining the multiple of SDE is the industry which the business is part of. Certain industries are more desirable than others. Factors influencing desirability include:

  • The fun & ease of operating the business
  • Location
  • Facilities
  • Employee relations
  • Operating hours
  • Growth potential

Valuing Your Business
To estimate the value of your business, we will consider all the factors identified above, the selling prices of comparable businesses, as well as any other factors unique to your particular business that may make it more valuable. Please contact VR Mergers & Acquisitions / VR Mergers & Acquisitions / VR Business Brokers located in Austin, Texas for a no-obligation business valuation.


Contact us today for
your no obligation opinion of value
  • Name:
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  •  Interested in selling
  •  Curious what my
            Busines is worth

Each office is
independently owned
and operated

Our office is owned by

Derrick  Business  Group , Inc.

3445 Executive Center Drive, Suite 251
Austin, TX 78759

Phone 512 - 340 - 0181

Fax 512 - 340 - 0182
E-mail Us