Austin · Choosing an advisor
How can an Austin business owner get the highest value when selling a company?
The company-side and deal-side levers that decide how much an Austin owner receives in a sale, and which ones to work on first.
By Michael D. Rubin, CEO & Founder · September 2026 · 816 words
An Austin owner gets the highest value by improving what buyers pay for before going to market, selling through a confidential process where several qualified buyers compete, and judging offers by what you keep after taxes and terms, not by the headline price. Each of those three parts can move the result more than most owners expect.
For companies with $3 million to $100 million in revenue, value is most often three to seven times adjusted EBITDA. EBITDA is earnings before interest, taxes, depreciation and amortization; adjusted EBITDA removes owner perks and one-time costs. So there are two levers on the company side: making that earnings number larger and more believable, and moving the multiple toward the top of the range.
What moves a company up or down the multiple range
Buyers are pricing risk. Every item in the right-hand column is a risk they will charge you for, either through a lower multiple or through terms that shift the risk back onto you.
| Driver | Pushes value up | Pushes value down |
|---|---|---|
| Recurring revenue | Contracts, service agreements, repeat customers | Mostly one-time projects |
| Customer concentration | No single customer is a large share of sales | One or two customers carry the company |
| Owner dependence | Managers run daily operations | Owner holds key relationships and decisions |
| Growth | Steady, documented growth and a credible plan | Flat or falling results |
| Financial records | Three years that reconcile to tax returns | Personal expenses mixed in, missing detail |
| Margins | Stable or improving | Squeezed, or swinging without explanation |
Make the earnings number bigger and believable
Two owners with the same profit can present very different adjusted EBITDA. A careful financial recast identifies legitimate add-backs: an owner's above-market salary, personal vehicles run through the company, one-time legal costs, a family member on payroll who will not stay after the sale. Each dollar of documented add-back is worth several dollars of price at the multiple. Each dollar that a buyer's accountants later reject is lost at the same rate, and usually costs trust as well.
The same applies to revenue. Be ready to show where it comes from by customer, by service or product line and by month, so a buyer can see that growth is real and not the result of one large order.
The practical rule: claim every add-back you can document and none you cannot. What is my business worth? walks through the calculation in more detail.
Let competition set the price
A single buyer sets the price it wants to pay. Several buyers bidding at once reveal the price the market will pay. Owners who accept the first approach, or talk to one buyer at a time, give up that difference without ever seeing it.
A competitive process means preparing the company fully before anyone sees it, reaching private equity, strategic and individual buyers together, and negotiating several letters of intent, written offers with price and key terms, in the same window. It also means not letting one eager buyer lock you into exclusivity, a promise to stop talking to others, before the rest have made their offers.
Judge offers by what you keep
An offer with a lower price but more cash at closing can be worth more than a higher one built on promises. Timing matters too; when to sell covers the market and personal factors.
- Cash at closing versus money promised later.
- Earnouts, meaning part of the price paid only if targets are met after the sale.
- Seller notes, where you lend the buyer part of the price.
- The working capital peg, the normal level of receivables plus inventory minus payables the company must deliver at closing.
- Escrow and indemnities, money held back to cover problems found after the sale.
- Tax structure, such as whether assets or shares are sold, which your CPA and transaction attorney should analyze before you sign.
Keep the business strong while it is being sold
The months of a sale are the months buyers watch most closely. Owners who pour their time into the sale and let sales calls, hiring or maintenance slide often see results dip, and a dip during due diligence is the easiest reason a buyer has to lower the price. Let the advisor run the process so you can run the company. Hitting your forecast while the buyer is watching is one of the strongest negotiating positions a seller can have.
How we work toward the highest value for Austin owners
We build a financial recast, a confidential marketing package and an HD video for every company, and negotiate multiple letters of intent at the same time. A principal of the firm is in every negotiation, and every offer is presented to you in person. If you are a year or two from selling, pre-exit consulting can work on the drivers above first. For Austin owners we come to you; see our Austin page, contact us, or start with a free valuation snapshot.
Where this fitsAustin business brokers and M&A advisors →