We provide independent business valuations in Houston for all situations
Nielsen Valuation Texas provides unbiased business valuation services in Houston TX. We operate in full compliance with the regulations of the IRS and provide sound and non-speculative valuations that earn the respect of all parties, even in litigation. Contact us today for a quote!
Our Services in Houston
Nielsen Valuation Texas is your business valuation expert in Houston for all types of situations:
- Buying or selling a business
- Restructuring or dissolving a business
- ESOP
- Tax planning and compliance
- Litigation
- Partner buyout
- Buy-sell agreements
- Shareholder and partner disputes
- Financial Reporting & Strategic Planning
- Business loans or funding
- Divorce settlements
- Attracting investors
- Estate planning and probate
- Insurance purposes
- Mergers and acquisitions
- And more!
Why Choose Us for Your Houston Business Valuation?
Many of our clients choose us for their business valuation in Texas because of our completely unbiased valuations that put a strong emphasis on the situation in the business. We look beyond the numbers to find out what the business is really worth, with respect also to the purpose of the valuation.
Our presence in Houston and other parts of Texas also means that we know the businesses and people in the area. It is easy for us to arrange a face-to-face meeting with you or the company we are valuing.
We Operate with Full IRS Compliance
There is a plethora of approaches among business valuations appraisers on how to value a business. Two analysts can come up with two completely different valuations for the same company.
Therefore, we strongly believe that fair market value should be the guiding star for any valuation – not speculation. The Internal Revenue Service (IRS) agrees.
In IRS Revenue Ruling 59-60, they clearly state that business valuations cannot be based on predetermined formulas. Nor can they use standardized rates of capitalization or marketability discount rates based on theoretical assumptions.
In all of our valuations, we make sure that we fully comply with this ruling, which supersedes all certifications. In practice, this means that we look closely at the business in question to truly understand what is going on and what its value is in the marketplace.
We Uncover the Story Behind the Numbers
We uncover the true story behind the numbers in the books.
Simply using the numbers on the income statements and balance sheet to calculate the value of the business will always produce the wrong result.
Why is that?
- The income statements may include income and expenses that are irregular, one-time payments, or unrepresentative costs or revenues.
- The value of assets on the balance sheet is rarely the same as their market value.
Therefore, we always normalize the income statements and the balance sheet before proceeding with the calculations.
What we find out is the fair market value of the company. The value at which a buyer and seller would voluntarily agree in an open and free market. Then discounts might be applied, depending on the situation.
We Use Robust Valuation Methodologies – and Always Critically
There is a plethora of theoretical approaches among business valuation firms. We believe that most of them are useful only in theory. We never rely on predetermined formulas. We choose one or more valuation methods depending on the type of business, the purpose of the valuation and other factors.
We use one or more of the following approaches:
- Asset approach – the net asset value (at market price)
- Income approach – income or cash flow-based valuation
- Market approach – based on what similar businesses in Houston sell for
By choosing an appropriate method and tailoring it to the situation, we ensure that we can avoid unnecessary speculation and deliver a robust valuation that you and your business partners or counterparts can trust.
We Always Provide Customized Valuation Services
There is no “one size fits all” approach to business valuation. When you use our services, we make sure you always get a personalized approach. This begins with our first contact. We are happy to provide you with a free 30-minute consultation before providing you with a customized quote. This ensures that you don not overpay for services you are not in need of.
How Much Is My Houston Business Worth?
If you are planning to sell your business, you need to consider what it is worth in the market – what a buyer is willing to pay – as opposed to a purely theoretical calculation.
A common mistake sellers make is to put too high an expectation on potential. However, buyers are rarely willing to pay for potential because they want a reward for the risk they are taking. As a seller, it is important to recognize this if you want to sell your business. A balanced valuation will help you get there.
Another common mistake, especially among startups, is survivorship bias. They may point to successful startups like Meta, Alphabet or Spotify and argue that their business has the same potential. However, investors and buyers know that only about 1/10th of startups survive in the long run, a risk they have to consider when buying.
Do You Need a Business Valuation in Houston?
Nielsen Valuation Texas is pleased to offer a free 30-minute consultation and personalized quote.
