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Small Business
Valuation

Get a business appraisal from a certified professional to preserve your most valued asset – your business.

An accurate business valuation prepared by a certified appraiser delivers critical insights that help you buy, sell or inform strategic planning decisions.

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Why Small Business
Valuations Matter

Knowing the true worth of your business helps you make informed decisions, and it ensures you get the best value. Understanding market conditions and how they impact valuation is critical for any business owner, which is why a business valuation is vital and useful when you are:

Selling or Buying a Business

Accurate valuations ensure you negotiate a fair purchase price and receive maximum value during a sale.

Resolving Partnership Disputes

An objective valuation provides a clear basis for equitable settlements between partners.

Estate Planning

Valuations help in the fair distribution of business assets and ensure your estate plan reflects the true value of your business.

Raising Capital

Understanding the worth of your business is essential for attracting investors and securing funding.

small business valuation for a business owner

Small Business Valuation Methods

How do we determine the value of your business?

Understanding the different methods for valuing a small business is essential for making informed financial decisions.

Here are the key methods our certified appraisers use to determine the value of your business:

Accurate Small Business Valuations in 3 Easy Steps

To achieve a precise and reliable business valuation, we follow three essential steps:

Step 1: Data Collection

Your certified appraiser will guide you on what financial documents are needed for the valuation, including profit and loss statements,balance sheets, tax filings, and other relevant records. Organizing these documents helps streamline the valuation process and ensures that nothing is overlooked. We also review past expenses to identify any one-time or non-recurring items that may be considered for potential addbacks.Additionally, we search for discretionary expenses, such as personal or non-essential costs, including donations, that might also be considered for potential addbacks.

Step 2: Normalization and Adjustment

During the valuation process, we adjust the financial statements for valuation purposes. These adjustments, based on our interview with the owner(s), focus on non-operational expenses and non-recurring expenses to provide a clearer picture of the business’s true performance. It's important to note that these adjustments are made within our proprietary valuation model and do not alter your actual financial statements in your accounting software.

Step 3: Benchmarking and Valuation

After collecting, reviewing, and adjusting your financial data, we benchmark your company against similarly sized businesses in the same industry. This comparison provides valuable insights and highlights potential adjustments necessary for an accurate valuation. These steps culminate in a well-documented and insightful valuation, ensuring a clear understanding of your business's true financial standing.

small business valuation for a business owner

Small Business Valuation

Reports we offer

standard annual business appraisal report

Annual Appraisal Report

As a business owner, understanding the true value of what you've built is essential for shaping your future. Our Standard Annual Business Appraisal Report, prepared by a NACVA Certified Appraiser, offers personalized insights like hand-picked comparable sales, custom financial adjustments, and expert valuation methods. With a personalized video and free consultation, we help you make informed decisions, secure financing, win contracts, and plan for growth. This report is a powerful tool to empower your business and drive success.

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small business valuation report

Essentials Business Valuation Report

Looking to buy or sell a business? Our Essentials Business Valuation Report is a quick and cost-effective way to determine your business's market value. This 18+ page report includes a clear summary of your business's worth, using both market and asset-based approaches. We analyze recent sales and Seller's Discretionary Earnings (SDE) multiples to give you an accurate valuation.
Perfect for small businesses with under $2 million in annual revenue.

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small business valuation essentials report

Standard Business Valuation Report

Need a more detailed analysis for buying or selling a business? Our 35+ page Standard Business Valuation Report offers an in-depth evaluation with a fast turnaround. It includes everything from our Essentials Report, plus additional insights like EBITDA multiples (if applicable), cash flow capitalization, multi-stage growth analysis, and benchmarking against industry standards. Perfect for getting a comprehensive view of your business's value.

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small business valuation summary report

Certified Business Valuation Summary Report

Looking for a formal and reliable business valuation? Our 65+ page Certified Business Valuation Summary Report offers a thorough assessment, prepared and signed by a NACVA Certified Appraiser. This report follows strict professional standards and provides everything needed for legal purposes like buy/sell agreements, estate planning, divorce settlements, or litigation. It ensures a precise and defensible determination of your company’s fair market value.

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Proven Expertise Across Diverse Small Business Industries

BizWorth has extensive experience serving a wide range of small businesses with valuations, including:

  • Retail Stores and Boutiques
  • Restaurants and Cafes
  • Professional Services (e.g., Law Firms, Accounting Firms)
  • Real Estate Agencies
  • Construction and Contracting Businesses
  • Marketing and Advertising Agencies
  • Health and Wellness Centers (e.g., Gyms, Spas)
  • Technology Startups
  • Automotive Repair Shops
  • Educational Services (e.g., Tutoring Centers, Daycares)
  • Specialty and Craft Shops

For a complete list of industries we serve, please visit our Industries Page.

small business valuation for business ownersmall business valuation grid
small business valuation for construction industry

Proven Expertise Across Diverse Small Business Industries

BizWorth has extensive experience serving a wide range of small businesses with valuations, including:

  • Retail Stores and Boutiques
  • Restaurants and Cafes
  • Professional Services (e.g., Law Firms, Accounting Firms)
  • Real Estate Agencies
  • Construction and Contracting Businesses
  • Marketing and Advertising Agencies
  • Health and Wellness Centers (e.g., Gyms, Spas)
  • Technology Startups
  • Automotive Repair Shops
  • Educational Services (e.g., Tutoring Centers, Daycares)
  • Specialty and Craft Shops

For a complete list of industries we serve, please visit our Industries Page.

small business valuation for business ownersmall business valuation grid
small business valuation for construction industry

The Key Components of a Business Valuation Report

Understanding the different components of a business valuation report is essential for making informed decisions.

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Equity Value

The value of the owners' interest in the business, reflecting the residual interest after liabilities are deducted from assets.
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Asset Sale Value

The net value if the business’s assets were sold individually, providing insight into the liquidation potential of the company's tangible and intangible assets.
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Enterprise Value

The total value of the business, including debt and equity, offering a holistic view of the company's market value that potential buyers consider.
small business valuation for different industries

Key Performance Indicators (KPIs)

Metrics that show the business's performance, including profits, market conditions, and other vital statistics, helping to gauge the operational effectiveness and financial stability of the business.

Key Factors in a Small Business Valuation

Consideration of the following factors ensures BizWorth provides a comprehensive and accurate valuation tailored to the specific characteristics and needs of small businesses.

Financial Performance
Market Conditions
Business Assets
Growth Potential
Operational Factors
Legal and Regulatory Environment
Historical Performance
Liabilities and Debts
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Why Choose Bizworth?

A Small Business Valuation Company You Can Trust

At BizWorth, our commitment to providing independent, USPAP-compliant valuations has earned us a reputation for excellence. We proudly serve a diverse range of clients, including business owners, brokers, CPAs, attorneys and lenders.

Let us help you make informed decisions about your business investments with confidence and clarity. Get an online quote today!

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Small Business Valuation Team

Your Small Business Valuation Team

Our certified appraisers adhere to the highest standards, including the Uniform Standards of Professional Appraisal Practice (USPAP). By following these rigorous guidelines, we ensure our valuations are both reliable and capable of withstanding scrutiny.

Shelia Darby, MBA, CVA,
MAFF, ECA

Managing Director, BizWorth

Shelia Darby is the Managing Director of BizWorth, where she leads the valuation department and specializes in business valuation and litigation support. With a career spanning over 25 years, she has deep expertise in valuation engagements, including complex litigation cases. She holds a BBA in Finance from Baylor University and an MBA from Rice University’s Jones Graduate School of Business. A CVA, MAFF, and ECA, Shelia is a member of NACVA and the Institute of Equipment Valuation and previously served on NACVA’s Ethics Oversight Board.

Jon Donnel, Managing Director of Advisory at BizWorth

Jon Donnel

Managing Director, Valuation Advisory

Leads the Valuation Advisory Practice focused on complex valuations, loss profit calculations, partner buy-outs and disputes. Jon has held senior-level director positions for Fortune 50 companies and investment banks. He is a Certified Valuation Analyst (CVA) and holds a bachelor’s degree in economics and an MBA from Rice University.

Robert Brand

Director, Business Valuation

Leads BizWorth’s informational and certified business valuation practice. Robert is an officer of NACVA's Houston State Chapter and serves as the treasurer of Houston's Texas Association of Business Brokers. He is a Certified Valuation Analyst (CVA). Robert is a former Combat Engineer serving in Iraq for the U.S. Army and holds a bachelor's degree in finance from University of Houston.

Renee Schreier

Director of Operations

Manages BizWorth's operations and strategic planning initiatives, report production and customer applications. Renee serves as the secretary of Houston's Texas Association of Business Brokers and was a former operations administrator with Accenture. She holds a bachelor’s degree from Texas Lutheran University.

Joseph (Joey) Wilson

Senior Market Analyst

Leads BizWorth's industry and market research initiatives. Joey was a former production analyst with Scotiabank. He holds a BBA and Master of Finance degrees from the University of Oklahoma.

Dan Darby

Director of Pitch Books & CIMs

Leads Pitch Book and CIM report production. Former management consultant with several Big 5 and Fortune 50 companies. Holds a bachelor’s degree in Business Administration from Baylor University and a Master of Science in Organizational Leadership from Northwestern University.

Shelia Darby, MBA, CVA, MAFF, ECA
Managing Director
Shelia Darby is the Managing Director of BizWorth, where she leads the valuation department and specializes in business valuation and litigation support. With a career spanning over 25 years, she has deep expertise in valuation engagements, including complex litigation cases. She holds a BBA in Finance from Baylor University and an MBA from Rice University’s Jones Graduate School of Business. A CVA, MAFF, and ECA, Shelia is a member of NACVA and the Institute of Equipment Valuation and previously served on NACVA’s Ethics Oversight Board.
Joseph Wilson, CVA, ECA
Business Valuation Manager
Joseph is a Business Valuation Manager at BizWorth, where he leads the firm’s SBA Valuation Team and oversees engagements across a broad range of industries. He holds a B.B.A. in Energy Management (2017) and an M.S. in Finance (2021) from the University of Oklahoma. Joseph serves as Treasurer of the TABB Houston Chapter and holds certifications as a Certified Valuation Analyst (CVA) and Equipment Certified Appraiser (ECA).
Shelia Darby, MBA, CVA, MAFF, ECA
Managing Director

Shelia Darby is the Managing Director of BizWorth, where she leads the valuation department and specializes in business valuation and litigation support. With a career spanning over 25 years, she has deep expertise in valuation engagements, including complex litigation cases. She holds a BBA in Finance from Baylor University and an MBA from Rice University’s Jones Graduate School of Business. A CVA, MAFF, and ECA, Shelia is a member of NACVA and the Institute of Equipment Valuation and previously served on NACVA’s Ethics Oversight Board.

Joseph Wilson, CVA, ECA
Business Valuation Manager

Joseph is a Business Valuation Manager at BizWorth, where he leads the firm’s SBA Valuation Team and oversees engagements across a broad range of industries. He holds a B.B.A. in Energy Management (2017) and an M.S. in Finance (2021) from the University of Oklahoma. Joseph serves as Treasurer of the TABB Houston Chapter and holds certifications as a Certified Valuation Analyst (CVA) and Equipment Certified Appraiser (ECA).

Jack Nielsen, CVA
Certified Business Appraiser

Jack is a Certified Business Appraiser, where he plays a key role in delivering Certified and Informational valuations. A graduate of Texas A&M University with a B.S. in Economics, Jack is a credentialed CVA through the National Association of Certified Valuators and Analysts. In addition to valuation work, he leads the creation of Confidential Information Memorandums and Quick Pitches.

Victoria Duron, CPA
Business Valuation Manager

Victoria is a Business Valuation Manager at BizWorth, focusing on valuation production and compliance support. She holds a Master in Professional Accounting and a BBA from The University of Texas at Austin. Victoria is a licensed CPA in Texas and a member of the American Institute of Certified Public Accountants and the Texas Society of CPAs, Houston Chapter. She is currently pursuing her CVA designation.

Sydney Gray
Business Appraiser

Sydney Gray is a Financial Analyst at BizWorth, contributing to the valuation production team. She holds a Bachelor of Science in Business Administration from Liberty University and is pursuing a Master of Business Administration with a concentration in Finance. Sydney is currently pursuing the Certified Valuation Analyst (CVA) designation.

Dan Darby, MSc
Managing Director

Dan is a Managing Director at BizWorth, focusing on technology and partnership development to grow the company’s reach and advisor network. He holds a BBA from Baylor University and a Master of Science in Leadership and Organizational Change from Northwestern University. Dan brings a strong background in strategic marketing, technology adoption and business development.

Madeleine Fontein, PMP
Business Operations Coordinator

Madeleine Fontein is the Business Operations Coordinator at BizWorth, where she supports production management and streamlines business operations to ensure efficiency across teams. She holds a Bachelor of Commerce from Dalhousie University and is a Certified Project Management Professional (PMP). With a strong foundation in operational strategy and process improvement, Madeleine plays a key role in delivering high-quality valuation services.

Weston Tschirhart, ECA
Certified Machinery & Equipment Appraiser

Mr. Tschirhart is a certified machinery and equipment appraiser at BizWorth. Specializing in over 10 years of agricultural, industrial and restaurant machinery and equipment, Mr. Tschirhart’s expertise ensures accurate and reliable assessments for clients across various industries and locations throughout the country. A proud graduate of the University of Texas at San Antonio (UTSA), Weston's analytical prowess and commitment to excellence make him a valuable asset in providing comprehensive and accurate machinery and equipment appraisals to clients from coast to coast.

Kristin Jensen
Partner Operations Manager

Kristin Jensen is the Partner Operations Manager at BizWorth, where she serves as the primary liaison for partner engagement and support. She oversees onboarding, communications, and process optimization to ensure a seamless experience for BizWorth’s network of valuation partners. Kristin holds a Bachelor’s Degree from Colorado State University.

I need to feel confident that I can take my report to a bank, investor, attorney - whomever I want - and that what’s in the report is accurate. I like that your reports are certified, easy to read and easy to understand.
Victor A., Business Owner
The information and guidance really helped us put things in perspective and taught exactly what we needed to do in selling our small online business.
Leila M., Business Owner
Working with BizWorth for our first business valuation was so incredibly easy and helpful. We were worried we wouldn’t get all of the value we saw in our business in the sale, but their expertise and report gave us a lot of confidence.
Carolyn T. Business Owner
Highly recommended.
Provide amazing value
Very talented team.
Definitely reach out.
Honest, hardworking, extremely competent.
Well worth the investment.
Give you real numbers to negotiate with.
Extremely organized.
Super-smart people helping companies succeed.

BizWorth is here to help

We provide valuations for small businesses. Click the green button below to discover how our accurate and unbiased valuations can benefit your organization.

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Additional Services

Let us help you achieve a precise and defensible business valuation for your most valued investment. Get an online quote today!

Frequently asked questions

What is a business valuation?

Business valuation is the process of determining the economic value of a business or company. It's used for a variety of reasons, including sale value, establishing partner ownership, taxation, and even divorce proceedings.

Why do I need a business valuation?

Business valuations are essential for understanding the true worth of your business. They are critical during sales, mergers, acquisitions, and for raising capital. They also help in estate planning, resolving disputes, and enhancing business strategy. For more about why you may need a business valuation, check out the “Define the Purpose” section of BizWorth’s Definitive Guide to Business Valuation Reports.

How is a business valuation performed?

A business valuation can be performed using various methods, including the income approach, market approach, and asset-based approach. The choice of method depends on the nature of the business and the purpose of the valuation. For more about how business valuations are performed, check out the “Read the Report” section of BizWorth’s Definitive Guide to Business Valuation Reports.

What information do I need to provide for a valuation?

Typically, you'll need to provide the past three years of financial statements (income statements, balance sheets, cash flow statements), tax returns and information about the company, market and competition. For a complete list of required information, check out BizWorth’s Definitive Guide to Business Valuation Reports.

How much does a business valuation cost?

The cost of a business valuation can vary widely based on the complexity of the business, the purpose of the valuation, and the level of detail required. For most small businesses, costs can range from a $1-3k for buying and selling a business and $7-10k for estate planning, divorce and legal disputes.

Who is qualified to perform a business valuation?

Business valuations are typically performed by professional business appraisers who have specialized training and certification. These professionals are certified valuation analysts (CVAs), or certified public accountants who are accredited in business valuation (ABV). Professionals with an Accredited in Business Valuation (ABV) and Accredited Senior Appraiser (ASA) designation are also trustworthy sources of a business valuation.

IMPORTANT: If you are receiving an appraisal from an algorithm or anyone who does not have these credentials, chances are you are receiving a ballpark estimate or personal opinion rather than an actual business valuation or business appraisal. These estimates can be anywhere between 15-30% off the actual value of your business so be sure to only use these estimates for initial planning considerations but do not use these estimates for decisions that could cost you time or money.

How often should I get my business valued?

Getting your business appraised annually provides an up-to-date assessment of its value, which is essential for accurate financial planning and forecasting. Regular appraisals ensure you have current data on your company's worth, enabling you to create realistic financial plans and forecasts. This information is crucial for setting achievable goals and making informed decisions about expansion, investment, and resource allocation. Additionally, understanding the drivers of your business's value allows you to implement strategies to enhance performance and increase profitability. Annual appraisals also offer the opportunity to benchmark your business against local competitors, providing valuable insights into market positioning and areas for improvement to boost your business’s value.

On the other hand, not having your business appraised every year carries significant risks. Without an annual appraisal, you may rely on outdated or inaccurate information, leading to poor decision-making and missed opportunities. This can result in undervaluing or overvaluing your business, affecting negotiations for financing, mergers, or acquisitions. Furthermore, in the event of unexpected circumstances like a sudden sale, retirement, or partnership dissolution, having an up-to-date valuation ensures you are well-prepared and can act swiftly and confidently. Regular appraisals also help identify potential issues early, allowing you to address them before they become major problems. Additionally, without benchmarking against competitors, you may miss critical insights that could help you stay competitive and enhance your market position.

What can I do to increase the value of my business?

As a business owner, whether you are operating in a booming or declining industry, enhancing the value of your business should be a constant priority. The right strategies can drive growth, attract investors, and improve your bottom line. Here are practical ways to boost your business's value regardless of the economic climate or industry trends.

  • Obtain an Annual Business Valuation: Understanding the true value of your business is crucial, particularly when making strategic decisions regarding sales, investments, or growth. Industry multiples and rules of thumb (like the ones provided in this publication) while quick and convenient, often fail to provide an accurate valuation as they overlook the unique characteristics and current market conditions of a specific business. These methods typically do not consider the variability across industries, the impact of economic shifts, or include value of intangible assets that are unique to each business, which can lead to misleading valuations.
  • A professional business valuation prepared by a certified appraiser, however, offers a comprehensive and objective assessment, considering all pertinent factors, including intangibles and current market trends. This not only aids in identifying areas for improvement but also serves as a reliable basis for negotiations with potential buyers or investors, ensuring that business decisions are informed and reflect the true worth of the company.
  • Diversify Your Revenue Streams: One of the most effective ways to safeguard your business against market fluctuations is to diversify your revenue sources. This could mean expanding into new markets, adding new customers, developing new products, or adding complementary services that appeal to your existing customer base. Diversification not only spreads risk but also opens up new avenues for growth.
  • Strengthen Your Financial Health: Robust financial management is crucial for enhancing business value. This involves more than just keeping good books. Focus on improving cash flow, reducing debts, and managing expenses efficiently. Consider hiring a skilled financial advisor to uncover hidden opportunities for savings and investment. Transparent and reliable financial reporting also builds credibility with potential investors and lenders.
  • Enhance Operational Efficiency: Streamlining operations can significantly reduce costs and improve service delivery. Evaluate your processes regularly and identify areas where you can cut fat. Technology can be a great ally here; modern software solutions can automate routine tasks, reduce errors, and save time. Lean operations not only increase profitability but also make your business more attractive to potential buyers.
  • Focus on Quality and Innovation: In any industry, quality and innovation are key differentiators. Consistently delivering high-quality products and services fosters customer loyalty and enhances brand reputation. Simultaneously, staying ahead of industry trends and being open to innovation can set you apart from competitors. Investing in research and development might seem daunting, but it is often essential for long-term sustainability.
  • Build a Strong Team: Your employees are your most valuable asset. Investing in their professional development can bring immense returns. A motivated, skilled team is more efficient, innovative, and capable of driving your business forward. Additionally, a strong leadership team reassures investors and partners of your business's stability and growth potential.
  • Cultivate a Strong Brand: A strong, recognizable brand can significantly increase the value of your business. Effective branding goes beyond just logos and taglines; it encompasses the customer's entire experience with your company. Build a brand that stands for reliability, quality, and customer commitment. Strong branding makes your business a preferred choice for customers and a valuable asset in the eyes of potential buyers.