Texas-based M&A advisors serving business owners nationwide.
What is your business worth on the market today?
Before choosing an asking price or committing to a sale process, understand the earnings, assumptions and buyer considerations behind your business’s potential value. Lion offers three levels of advisor-prepared business valuation, from an initial market range to a detailed analysis and strategic exit roadmap.
What is a business valuation for the sale of a business?
A business valuation for a potential sale estimates what a business could reasonably be worth based on its earnings, risks, market context and the interest being valued. It provides a basis for planning and pricing discussions. Actual offers and negotiated terms may differ from the estimated range.
Why obtain a valuation before selling your business?
A valuation helps you assess whether a potential sale fits your goals before you approach buyers. It can also identify assumptions that need support and help you decide whether to move forward now or prepare for a later exit.
Set informed expectations
Understand the financial basis for a potential market value range before selecting an asking price.
Understand the earnings story
See how reported results connect to the adjusted earnings used in the valuation.
Evaluate more than a headline number
Consider how buyer fit and transaction terms may affect a sale. More detailed services explore these factors in greater depth.
Start with our free business valuation calculator
The calculator uses your inputs and general assumptions. It is not an advisor-prepared valuation or a basis for setting a transaction price. Bring the results to a conversation with your Lion advisor to discuss the next level of analysis.
Compare our business valuation services
From Opinion of Value to Quality of Earnings
Choose the level of analysis that fits your decision. Each service includes preparation by a senior advisor and a discussion of the findings.
Broker Opinion of Value (BOV): An initial market value range
For owners who want a practical starting point before deciding whether to explore a sale or commission deeper analysis.
– Three years of recast earnings from tax returns and a bridge to adjusted EBITDA or seller’s discretionary earnings.
– An estimated market value range with implied earnings multiples and concise market context.
– Likely buyer categories and a concise two-page report.
– A review of the findings with the senior advisor and your Lion advisor.
Advanced Broker Analysis (ABA): Understand the value and what supports it
Advanced Broker Analysis (ABA)
Understand the value and what supports it. Our recommended starting point for most owners who want a detailed preliminary valuation and the reasoning behind it.
– Valuation method selection and normalized earnings, with material adjustment judgments explained.
– The upward and downward factors behind the multiple, plus a base case, alternative scenarios and sensitivity analysis.
– Expected deal structure, with the assumptions behind potential transaction terms.
– A full report, two-page summary and 60-minute review with the senior advisor and your Lion advisor.
Strategic Market Valuation (SMV): Connect current value to your exit strategy
For owners comparing a potential sale today with preparing for a future exit and who want to understand the potential value of specific improvements.
– All Advanced Broker Analysis components, plus industry and M&A activity analysis and competitive positioning.
– A named map of potential buyers and the reasons they may fit the business.
– A quantified value-gap roadmap linking specific actions to estimated effects on value, with assumptions and dependencies.
– A full report, summary, roadmap, review discussion and two follow-up discussions.
Buyer identification indicates potential fit, not confirmed interest or an offer. Estimated value improvements depend on execution and future conditions.
Start the process for a business valuation
Quality of earnings vs business valuation
When a QoE is useful
- Before you sell: A seller may use a QoE to address financial questions before approaching buyers, especially when earnings depend on significant add-backs, revenue recognition judgments or concentrated customers.
- Before you buy: A buyer may use a QoE to assess the earnings supporting an acquisition and understand cash flow and working capital needs before closing.
- When specific diligence is needed: A buyer or lender may require a particular report scope, provider qualifications or reliance terms. Confirm those requirements before ordering a report.
When a valuation is the better starting point
If your main question is what your business could sell for, whether a sale meets your goals or when to begin exit planning, a valuation is usually the better starting point. A QoE may be premature if a transaction is several years away, the business is changing substantially or basic records first need to be reconciled. Business size alone does not determine whether a QoE is useful; financial complexity, transaction risk and buyer or lender requirements also matter.How valuations and QoE work together
The earnings normalization included in BOV, ABA and SMV is part of the valuation scope. A standalone QoE provides separate financial diligence and is not included in a valuation engagement unless expressly stated in the written scope. Lion can help you decide whether a valuation, a QoE or both fit your next step. Explore Quality of Earnings reportsHow your valuation engagement works
- Discuss the decisionTell us about your business, sale objectives and timeline. We help you choose the depth of analysis that fits the decision you need to make.
- Confirm scope and provide recordsWe define the engagement and information required. Your Lion advisor coordinates collection of financial and business records.
- Prepare the valuationA senior advisor completes the agreed analysis, identifying material assumptions, earnings adjustments and limitations.
- Review the findingsWe discuss the conclusions with you, explain the reasoning and consider the implications for a potential sale or further preparation.
A transaction perspective on business value
Lion approaches valuation from the perspective of a potential business sale. Our analysis connects financial performance with the questions buyers may raise about risk, transferability and transaction terms. A senior advisor prepares each valuation, and you have a discussion of the findings with the people responsible for the work.
Based in Texas and serving business owners nationwide, Lion works with founder-led and owner-operated businesses, including commercial services, trades, manufacturing and other privately held companies. A valuation engagement does not require you to list your business for sale.
Start with the decision you need to make
You may be preparing to sell soon or deciding what a future exit could look like. Tell us what you need to understand, and we’ll help you select an appropriate valuation service.Business valuation questions and answers
What is the difference between the free calculator and a business valuation?
The free calculator generates a directional estimate from your inputs and general assumptions. An advisor-prepared valuation involves a review of financial records and business information within an agreed scope, with a senior advisor explaining the analysis. Use the calculator to start exploring the question; request a valuation when you need a supported analysis for sale or exit planning.
Which Lion business valuation should I choose?
Choose BOV for an initial market value range. ABA is our recommended starting point for most owners who want detailed reasoning, scenarios and expected deal structure. Choose SMV when you also want strategic market analysis, a named potential-buyer map and a quantified value-gap roadmap. Your Lion advisor can help match the scope to your goals.
How is a business valued for a potential sale?
The analysis considers financial performance, appropriate earnings adjustments, relevant valuation methods and multiples, and the business’s risks and market context. The depth of that analysis depends on the selected service. Revenue or a generic earnings multiple alone does not explain the assumptions behind a business-specific value range.
Do you use EBITDA or seller’s discretionary earnings?
The appropriate earnings basis depends on the business and likely buyer. Seller’s discretionary earnings is often relevant to an owner-operated business, while EBITDA may be more useful when evaluating a business with a management structure that continues after a sale. The report identifies the earnings basis and explains material adjustments within its scope.
What information will I need to provide?
Expect to provide three years of business tax returns and financial statements, current year-to-date results, owner compensation details, support for proposed add-backs, and information about debt, assets and operations. More detailed engagements may require monthly records, customer concentration data, forecasts and other supporting information. Your advisor confirms the required records before work begins.
How long does a business valuation take?
Our current delivery targets are five business days for BOV, ten for ABA and twenty for SMV. Timing begins after the engagement is signed, payment is received and Lion accepts the complete required information. Missing records, new material facts or scope changes may extend the schedule; the engagement confirms timing.
Can I obtain a valuation before I am ready to sell?
Yes. A valuation can help you evaluate a potential exit, compare your expectations with the analysis and decide whether further preparation makes sense. You do not have to commit to a listing engagement to obtain a valuation. SMV provides additional strategic analysis for owners considering a future exit.
Will requesting a valuation put my business on the market?
No. A valuation request and engagement do not authorize public marketing or buyer outreach. Listing your business requires a separate agreement. We discuss the process for providing sensitive records and the engagement’s confidentiality terms before collecting the required information.
Is the valuation the price I will receive or my net proceeds?
No. A valuation is an estimate, not a guaranteed offer or sale price. Buyer diligence, financing, market conditions and negotiated terms affect the outcome. The report identifies the value basis and treatment of items such as debt, cash and working capital. Taxes, transaction expenses and deferred payments can also affect what an owner ultimately receives.
What if I need a certified or lender-specific valuation?
Tell us the intended use before beginning. BOV, ABA and SMV are designed for business sale and exit planning. A certified valuation or a valuation required for a particular lender, legal matter or tax purpose is a separate engagement with its own requirements. Lion can help coordinate the appropriate service.
Do I need a quality of earnings report as well as a valuation?
They serve different purposes. A valuation estimates business value; a QoE examines the financial support for reported and normalized earnings. A valuation may be sufficient for initial sale or exit planning. A separate QoE may be useful when preparing for buyer diligence, evaluating an acquisition or addressing specific buyer or lender requirements. BOV, ABA and SMV do not automatically include a standalone QoE report; the written engagement defines the scope.
How do I request a business valuation?
Use the valuation request form to tell us about your business and goals. A Lion advisor will help identify the appropriate service, confirm the scope and explain the next steps for supplying records. If you are still exploring, you can start with the free calculator and discuss the results with us.
