Business Valuation Services
A business valuation is an independent, documented determination of what your company is worth to a buyer in today’s market. At A Neumann & Associates, every valuation is performed by an accredited, independent valuation firm: we meet with you confidentially, recast your cash flow from the past three years of tax returns to reflect the business’s true earning power, and the valuation firm then compares your company in key metrics against actual completed transactions in your industry. The result is a defensible fair market value, not an opinion.
Our business valuation services support owners across the East Coast who are preparing for a sale, planning an exit, or simply establishing a documented baseline for their company. Business appraisals (for smaller firms) or business valuations (for larger firms) are similar in their approach, however the degree of detail provided for each company depends on the size of the respective operation.
Each business valuation firms’ database is built on thousands of business appraisals that have been completed for business owners, business brokers, financial consultants, and lending institutions. Placing the right value on your business is essential for an accurate business appraisal and comparative numbers are invaluable.
How Is a Private Business Valued?
Accredited valuation firms never rely on a single multiplier. They use a weighted, multi-method approach: earnings-based methods built on recast cash flow, market comparisons against completed sales of similar companies, and asset considerations where relevant. Recasting matters because financial statements are usually prepared to minimize taxes, not to show earning power. Adjustments typically include owner compensation above or below market rate, one-time expenses, owner’s discretionary expenses run through the business, interest and depreciation, and non-market facility lease rates. Averages over several years may be weighted differently when the business has experienced a temporary change in cash flow, such as the loss or gain of a large customer.
How Much Is My Business Worth?
It is the first question every owner asks, and the honest answer is that it depends on documented earnings, not rules of thumb. Recent transactions announced by A Neumann & Associates have been appraised between 3.2x and 4.4x EBITDA by accredited national valuation firms, depending on industry, size, and earnings quality. Examples from the firm’s published deal announcements:
- A $16M industrial and infrastructure contractor in Western Pennsylvania, appraised at 3.3x EBITDA (March 2026 announcement)
- A $14M heavy construction company in Delaware, appraised at 3.2x EBITDA (July 2026 announcement)
- A $10M audio and lighting company in Northern Virginia, appraised at 3.5x EBITDA and acquired in a cash deal (May 2025 announcement)
- A $3M luxury kitchen and bath remodeling company on Long Island, NY, appraised at 4.3x EBITDA (August 2026 announcement)
- A franchised automotive repair facility in Maryland, appraised at 4.3x EBITDA and pre-qualified by an SBA lender (August 2025 announcement)
Where a business falls in that range depends on recurring revenue, customer concentration, owner dependence, documented profitability, and the strength of the market comparisons. The only way to know where your company sits is an independent valuation built on your recast financials.
Business Valuation by Industry
Multiples are not one-size-fits-all. The same dollar of earnings is valued differently in a bonded construction company than in a service business with recurring contracts. The table below shows estimated multiple ranges by industry, informed by A Neumann & Associates’ own published deal announcements:
| Industry | Est. Multiples In Selected Industries | Learn more |
|---|---|---|
| Construction & contracting | 3x to 4x EBITDA | Heavy construction valuations |
| Kitchen, bath & home remodeling | 3.2x to 4.3x EBITDA | Remodeling valuations |
| Automotive repair (franchised) | 4x to 4.5x EBITDA | Auto repair valuations |
| Audio & video integration | 3x to 4x EBITDA | Audio visual valuations |
| HVAC services | 4.1x to 4.3x EBITDA | Announced May 2026 and July 2025 |
| Food & beverage manufacturing | 4x to 4.5x EBITDA | Announced October 2025 |
| Medical device manufacturing | 3.5x to 4x EBITDA | Manufacturing valuations |
The ranges above are informed by published announcements of completed transactions, not industry rules of thumb. For a deeper look at what drives value in your vertical, visit the industry pages linked above.
What Is Fair Market Value?
Fair market value is the price at which a business would change hands between a willing and able buyer and a willing and able seller, each acting at arm’s length in an open market, with neither under pressure to act and both in possession of the relevant facts. An arms-length valuation by an accredited third party is the standard buyers, lenders, and courts recognize.
What Does the Valuation Process Look Like?
- A confidential meeting with the owner, typically about an hour, held away from the business.
- We collect the operational and financial information and recast the cash flow from the past three years of tax returns.
- An accredited, independent valuation firm analyzes the business and compares it in key metrics against completed transactions.
- You receive a documented fair market value and a confidential consultation on what it means for a potential sale.
Confidentiality applies at every step. The business is never publicly listed, and no information is shared without a signed non-disclosure agreement.
Client Perspectives
“My business was my baby for over 40 years. It is a tough and cruel world out there when it comes to selling your business. Neuman and Associates provided the professional guidance/protection to get the job done with care and no pressure. In my view a tremendous value. I would recommend them to anyone seeking to sell their business.”
Eric Storck, President, Blade Runners Inc.
“We did it. You had the confidence and determination to get the sale of my company done. So glad I called you. I found that using you as my broker was so much more beneficial than trying to do this alone. You helped guide me every step of the way. I am on my way to a retirement after 40 plus years running a business that you helped find a great new owner.”
Carrie Fusella, Seller, Design Alternatives
When seeking a business valuation, most business owners use tax returns or financial statements prepared for tax purposes as the basis for the financial presentation of their business. As a result, the market value of assets is not reflected because of depreciation or acceptable deductions that are written off for tax purposes. While this may be good for tax purposes, it does not reflect the years of hard work involved in accumulating business assets. The business Goodwill or intangible value, which represents a major component of what the business is worth, is not a consideration for income tax purposes and, therefore, not addressed in financial statements for tax purposes.
During the past twenty years, it has been our overwhelming experience that sellers considerably undervalue their businesses. A real-life example: a manufacturing company sold in the last year was valued at $30 million, and in fact, it later sold for approximately $30 million. After the closing, it was revealed that the seller and his CPA had originally thought the business was worth “about $17 million”. How could their opinion of value have been so far off? Well, neither the owner nor the CPA had any business valuation training, nor were they valuing businesses nationwide on a full time basis. Additionally, they were not trained in selling businesses, so their experience was very limited. These are essential components for the valuation of a company. Consequently, they were unable to assess the supply and demand for this type of business in the market place.
An independent business valuation ensures that the business is not undersold. Our detailed, 30+ page business appraisal analysis will convince a buyer that we have a valid basis and reason for a particular asking price. Thus, the business is not overpriced, and does away with the risk of buyers reading the prospectus and then aborting the acquisition due to overpricing (potentially compromising confidentiality in the process). Lastly, with business valuation documentation in place, the buyer’s lender will typically approve a loan considerably faster.
To establish audited financial statements by a reputable CPA firm, typical costs are in excess of $15,000 with another $30,000+ to obtain a qualified valuation. Due to our large volume of business valuations, we have the benefit of drastically lower costs among the five national business valuation firms that we utilize.
Even though a business valuation still might appear costly, the potential benefits far outweigh that cost. Typically, the cost is a mere fraction of the sought after asking price. By erroneously undervaluing your business, you could lose thousands of dollars. Without a solid analysis, you will need substantially more time in selling your business. Many buyers and investors will simply not look at your business as being seriously for sale, while others may engage you in long price discussions, and lenders will take more time approving a loan.
Most importantly, we fully reimburse business sellers upon a sale for any third-party, accredited valuation ordered from our firm, thus, in the end there are no expenses for business sellers to obtain a Fair Market Value for their businesses.
In A Neumann & Associates’ recently announced transactions, appraised multiples ranged from 3.2x EBITDA for heavy construction to 4.4x EBITDA for specialty manufacturing and remodeling companies. The spread reflects earnings quality, recurring revenue, and buyer demand in each vertical.
No. EBITDA is a widely used proxy for operating profitability, but accredited valuation firms weigh several methods together, including recast cash flow and market comparisons, and never rely on a single multiplier.
They are the starting point, not the answer. Statements prepared for tax purposes minimize reported income, so the valuation process recasts them to reflect true owner cash flow before any multiple is applied.
No. Many owners obtain a valuation for planning, partnership, insurance, or estate purposes. It establishes a documented baseline whether or not the business goes to market.