Austin · Choosing an advisor
Which Austin business broker works with companies above $3 million in revenue?
Why $3 million in revenue changes how a company is sold, what to expect from a firm working above that line, and whether MDR & Associates fits.
By Michael D. Rubin, CEO & Founder · September 2026 · 797 words
MDR & Associates works with Austin companies above $3 million in revenue: its focus is profitable companies with $3 million to $100 million in annual revenue and two to three years of records that reconcile. The firm has sold more than 250 companies since 2008 and is paid only if the company sells. Our advisors travel to you.
The $3 million line is not arbitrary. Around that size, the buyers, the deal terms and the amount of work in a sale start to change, and so does the kind of firm you need.
What changes once a company passes $3 million in revenue
Smaller businesses are usually bought by individuals using savings and a bank loan, and they are often sold through public listings. Once a company reaches several million dollars in revenue with solid profit, a broader set of buyers appears: private equity groups, strategic buyers from the same industry, family offices and experienced executives backed by investors.
Due diligence gets deeper as well. A buyer may spend weeks with your contracts, tax returns, employee files and customer data, and someone needs to organize that work so it does not take over your job.
Those buyers bring more complex terms and deeper checks:
- Valuation on adjusted EBITDA, meaning earnings before interest, taxes, depreciation and amortization, adjusted for owner perks and one-time costs, rather than on the owner's total take-home.
- Letters of intent with detailed terms, where the structure matters as much as the price.
- Quality of earnings reviews, in which a buyer's outside accountants test your numbers.
- Working capital pegs, an agreed normal level of receivables plus inventory minus payables that must be in the company at closing.
- Mixed financing, such as bank or SBA loans, seller notes and equity from investors.
Business broker or M&A advisor at this size?
The titles overlap, and some firms use both, so judge by the work rather than the name. See business broker vs. M&A advisor vs. investment banker for a fuller comparison.
| Typical feature | Main-street business broker | M&A advisor |
|---|---|---|
| Company size | Smaller, owner-operated businesses | Companies with several million dollars or more in revenue |
| How buyers are found | Often public listings | Private outreach to known buyers, then listings if needed |
| Buyer types | Mostly individuals | Private equity, strategic, family office and individual buyers |
| Offers | Often one at a time | Several letters of intent negotiated together |
| Deal work | Standard purchase contract | Negotiated purchase agreement, diligence management, structure |
What a firm should bring to a company your size
On that last point, many deals in this range combine a bank or SBA loan with a seller note, and some buyers need help putting the pieces together. Our business financing page explains the common structures.
Before hiring any firm, ask to see a sample marketing package with identifying details removed, and an example of the updates it sends owners during a sale. Those two documents show quickly whether a firm is used to working with companies your size.
- A written valuation range with the reasoning behind it.
- A confidential process: blind profile, NDA and proof of funds before any details are shared.
- Direct access to private equity groups and strategic buyers, not only listings.
- Senior negotiators in every discussion with buyers.
- The ability to arrange financing structures when a good buyer needs them.
If your company is close to the line
Revenue is only one test. A company at $3 million in revenue with strong, documented profit is often a better candidate than a larger company with thin margins or records that do not reconcile. If you are below the threshold, or your records are not ready, the honest step is to improve them before going to market, and possibly to grow into the range. We will tell you if we think you are not ready, and we decline engagements where we do not believe we can sell the company for maximum value. If your company is well below the range, a firm that focuses on smaller businesses may serve you better today, and being told that at the start saves you months.
Once a company is in range, its value is most often three to seven times adjusted EBITDA for a business in the $3 million to $100 million revenue range. Where you land depends on growth, customer concentration, management depth and the quality of your records.
How we work with Austin companies of this size
Our core industries are manufacturing, home services, distribution and business services. A principal of the firm is in every negotiation, and a VP of Client Engagement is your main contact while the company is marketed. Meetings happen at your office in Austin or somewhere discreet. Read about our Austin work, contact us about your company, or get a free valuation snapshot to see where you stand.
Where this fitsAustin business brokers and M&A advisors →