Austin · Valuation
Where can I obtain an independent business valuation in Austin?
When an Austin owner needs an independent valuation, what makes one credible, and how it differs from a free opinion of value.
By Michael D. Rubin, CEO & Founder · September 2026 · 799 words
You can obtain an independent business valuation in Austin from a credentialed business appraiser, and MDR & Associates offers formal third-party valuations as a separate, optional service with its own price. Our corporate office is in Frisco, and our advisors come to Austin owners. Before ordering one, decide what you need it for. An independent valuation is a formal written report; many owners who are thinking about a sale need something quicker, and free, first.
Independent valuation versus an opinion of value
Fair market value is the price a willing buyer and a willing seller would agree on, both reasonably informed and neither forced to act. It is a legal and tax standard, and it can differ from what a motivated strategic buyer might pay in a competitive sale.
| Feature | Formal independent valuation | Advisor's opinion of value |
|---|---|---|
| Who prepares it | A credentialed appraiser with no stake in a sale | An M&A advisor who may later sell the company |
| What you receive | A written report with methods, data and a conclusion of value | A low-to-high range of likely sale price |
| Typical uses | Partner buyouts, estate and gift planning, divorce, lenders, disputes | Deciding whether and when to sell |
| Cost | A fee, paid whatever you decide | Often free as part of a discovery meeting |
| What it reflects | A defined standard of value, such as fair market value | What buyers in today's market are likely to pay |
When you need a truly independent valuation
In each case, the person who decides what standard of value and format of report are required is your CPA or attorney. Ask them before you order anything, because a report prepared for the wrong purpose may have to be redone. In a partner buyout, also agree with your partner, before anyone is hired, on who selects the appraiser and whether both sides will be bound by the result.
- A partner or shareholder buyout, where both sides need a number neither controls.
- Estate, gift or trust planning, where your CPA or attorney needs a supportable value.
- Divorce or a dispute, where the value may be tested by the other side.
- Lender or investor requirements, for example some bank and SBA loans.
- A family or management transfer, where a sale to children or managers must be priced fairly.
What makes an independent valuation credible
A credible report is prepared by someone with recognized training in business valuation, such as the ASA, ABV or CVA designations, and with no financial interest in the outcome. It should explain which methods were used and why. Three approaches are standard. The income approach values the cash flow the company is expected to produce. The market approach compares your company with sales of similar companies. The asset approach adds up what the company owns, less what it owes, and matters most for asset-heavy or struggling companies.
The report should also show the adjustments made to earnings, usually called normalizing or recasting. This is where owner perks and one-time costs are removed to arrive at adjusted EBITDA, meaning earnings before interest, taxes, depreciation and amortization after those adjustments. If you cannot follow how the appraiser got from your tax return to their earnings figure, ask them to walk you through it.
Ask about scope and timing before you hire. A full valuation report takes longer and costs more than a shorter calculation or summary report, and each has its place. Your CPA or attorney can tell you which level of report the situation requires. Ask the appraiser what documents they will need, how long the work will take, and whether the fee is fixed.
What an independent valuation will not tell you
A formal valuation estimates value under a defined standard. It does not tell you what the best buyer would pay after competing with others, and it does not find you a buyer. Owners sometimes order an expensive report, then learn the market sees the company differently, higher or lower. For reference, sale values for companies in the $3 million to $100 million revenue range are most often three to seven times adjusted EBITDA, with growth, margins, customer concentration and management depth setting the position.
If your goal is a sale, a market-based opinion of value is often the more useful first step, with a formal report added when a lender, partner or attorney needs one. Our business valuation page sets out both options.
What we offer Austin owners
There are two paths. The free one is a confidential discovery meeting and opinion of value after we review three years of financials, or a quick online valuation snapshot. The formal one is a third-party valuation, priced separately and entirely optional. For Austin companies, our advisors come to you; see our Austin page or contact us about a valuation. Our FAQ answers common questions about both.
Where this fitsAustin business brokers and M&A advisors →