Where can I get a business valuation in Houston before contacting buyers?

By Michael D. Rubin, CEO & Founder · September 2026 · 786 words

Houston owners can get a pre-sale valuation from an M&A advisory firm such as MDR & Associates, which gives a free, confidential opinion of value after reviewing three years of financials and meets you in Houston, or from a credentialed appraiser if they need a formal report. Getting it before you contact any buyer is the right order. It tells you what to expect, and it shows you the weak spots a buyer would find while you still have time to fix them.

This article covers what to bring, what the valuation should show, and how to use it.

Why value comes before buyers

Owners who contact buyers first tend to make one of two mistakes. Either they anchor on a figure that is too high, lose credibility and waste months, or they accept an early offer without knowing it was low. A valuation done first gives you a realistic range and a list of issues to deal with. It also helps you decide whether now is the right time at all, or whether a year of preparation would pay for itself.

There is a practical benefit as well. Once buyers are involved, every weakness becomes a negotiating point for them. Before buyers are involved, the same weakness is simply a task on your list.

What to bring

• Three years of profit and loss statements and balance sheets, plus year-to-date figures.
• Three years of federal tax returns for the business.
• A list of owner and family pay, benefits and personal expenses that run through the company.
• Any one-time expenses or income, with a short explanation of each.
• Revenue by customer for your largest accounts.
• An equipment list with approximate age and condition, if equipment matters in your business.
• Your lease, or details of any real estate you own personally and rent to the company.
• An organization chart showing who does what, and who could run the business without you.

What the valuation should show you

A useful pre-sale valuation does more than produce a number. It should recast your financials into adjusted EBITDA (earnings before interest, taxes, depreciation and amortization, restated to remove your personal and one-time costs), place your company within the range buyers pay, which for companies with $3 million to $100 million in revenue is most often three to seven times adjusted EBITDA, and explain what moves you up or down within it.

The most valuable part is usually that last one: the list of things a buyer will discount, such as customer concentration, dependence on you, books that do not reconcile to tax returns, add-backs without documents, or equipment that needs replacing.

Using the result before you go to market

Sort the issues into three groups. Some you can fix in weeks: documenting add-backs, clearing obsolete inventory, putting key agreements in writing. Some take a year or two: building a management team, reducing dependence on one customer, showing a growth trend. And some you simply disclose and explain. The first group should be done before any buyer sees the company. The second decides your timing.

Our long read on preparing your business for sale goes through each area, and pre-exit consulting is available if you want structured help over 12 to 24 months.

Which kind of valuation you need

If your goal is to know what a buyer would pay, an advisor's opinion of value is built for that question. If you have partners with different expectations, a lender who wants an independent document, or estate planning to do before the sale, a formal third-party valuation may be needed as well. Some owners get the opinion of value first and commission the formal report only if a specific need arises. Our business valuation page sets out both.

Mistakes to avoid at this stage

• Using a valuation prepared for taxes or an estate plan as your sale expectation.
• Relying on an online calculator or a figure a friend in the industry heard about.
• Inflating add-backs to reach a number you like; buyers will check each one.
• Mentioning your valuation to a buyer before you have a process in place.
• Letting the valuation go stale; update it when a new year's results come in.

How MDR & Associates values Houston companies

MDR & Associates is a Texas M&A firm founded in 2008 with more than 250 closed transactions. We come to you, meeting at your office or somewhere discreet. After a confidential discovery meeting and a review of your financials, we give you a low-to-high opinion of value at no cost. If you decide to sell, the work done on your recast carries into the marketing package. See our Houston page and the Houston contact page, or begin with the free online valuation snapshot.

Where this fitsHouston business brokers and M&A advisors →