The Business Transfer Newsletter

View Our Businesses For Sale

AUGUST 2021

Selling Texas Companies Since 1974

Our monthly newsletters provide educational information about buying or selling a business, current economic conditions, and highlight some of our newest business-for-sale opportunities.

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"The best library of articles about how to sell your business"

~says The New York Times

We Make The Process of Selling

Your Business As Simple For You As Possible

We make the process of selling your business as simple for you as possible.

Certified Business Brokers (CBB), established in 1974, is one of the pioneers of the business brokerage profession and is one of the oldest and largest business brokerage firm in the U.S. We are a founding member of the International Business Brokers Association (IBBA), which is the largest business broker association in the world, and the Texas Assocation of Business Brokers (TABB), the precursor and model used to form the IBBA and other business brokers associations across the country.

As a business owner considering your options for selling, you know about running your business but you don’t know how to go about selling it. You need to know:

that the confidentiality of your business will be protected
you will get maximum exposure to qualified buyer prospects
you will receive sound advice in responding to offers
you will get the best possible price….and understand what drives value in your business
you are choosing the right firm to represent you and why you should choose CBB

Our standardized methodology is a system that has been honed and proven for over 40 years. We use automation and modern technology to qualify buyers, execute non-disclosure agreements, to track disclosures to potential buyers, and to give monthly reports to all clients listed with us.

The following is a 10-step overview of what you, as a seller, can expect.

Valuation - The First Step Towards Selling Your Business

Valuation - the first step towards selling a business

There are many factors that determine best timing for selling a small business -- the financial condition of the company, valuation, growth cycle, profit history, and the current market.

Usually the best time to obtain the highest price occurs when sales and earnings are good and trending upward. A solid earnings trend will enable a buyer to pay a higher price and still meet his return of investment criteria. A history of good performance also gives the buyer confidence in projected future earnings.

Value is dynamic and proper timing makes a big difference in the prices paid for business acquisitions. External factors such as the economy, industry trends, competition, stock market volatility, investor confidence, interest rates, and geopolitical considerations are cycles of constant change that impact value.

The Advantage of Buying an Existing Business

Most people think of starting a business from scratch, developing an idea, building a company from the ground up. Starting from scratch, however, has its disadvantages including – developing a customer base, marketing the business, hiring employees and creating cash flow … without any history or reputation to rely on.

To avoid these challenges, buying an existing business may prove to be the better solution. Buying an existing business has its advantages – including, but not limited to:

The Business Is Established.

An existing business is a known entity. It has an established and historical track record. It has a customer or client base, established vendors, and suppliers. It has a physical location with furniture, fixtures, and equipment in place. The term “turnkey operation” may be overused, but an existing business is just that, and more. New franchises may offer a so-called turnkey business opportunity, but it ends there. Start-ups are starting from scratch with all the disadvantages stated above.

The Three-Phase Process

of Selling a Business

If you are like most business owners, you have thought about selling your business a time or two. It’s perfectly normal to dream and wonder what it would be like to be free of all the trappings, headaches, and burdens of running your company. You probably also wonder how cumbersome the sale process might be and what it entails.

While we can’t tell you what your imagination comes up with at the thought of freedom, we can tell you that selling your business requires a substantial commitment and should be a calculated decision. As with most endeavors, whatever you put into the process is what you will get out of it.

A fundamental element to a successful sale is preparation. Knowing what to expect, understanding the motives of your most probable buyer, anticipating their questions, and vetting potential problem areas of your business that might inhibit or delay an eventual sale are key to a sound selling experience. Once you feel comfortable with these basics you just might stop wondering and take the leap necessary to begin living that dream.

Langham Creek Tire and Auto

This national brand tire dealership and auto repair service has been serving northwest Houston residents for over 18 years. The business stocks a variety of tires for cars, trucks, SUVs and vans, with a knowledgeable staff to assist in the best fit for customers’ vehicles. 8 full-service bays with lifts. Services include oil changes, routine maintenance, transmission work, brakes, A/C work, engine and other systems’ repairs. 75% of business is from repeat customers! In addition to a loyal consumer base, the shop serves fleet customers.

The business sits on a 25,000+ SF parcel with a standalone 5,460 SF shop/office/waiting area facing a heavily-traveled road. Grow the business by adding warranty work, increasing fleet accounts and providing loaner cars. Price includes $25K in inventory! Sales price of the real estate is $711,000.

Chris Treleaven listed and sold the business.

Great Wraps Woodlands

Buyer needs $600K net worth and SOME restaurant experience. Buyer pays lease transfer fee of $400 and Franchise Transfer fee of $7500. Seller will not do inventory count, but confirms around $3000 worth of inventory. $10K earnest money check is required for an offer. Additional earnest money is required after due diligence period to bring it up to 10% of purchase price, before going to landlord and Franchisor, although contract is still contingent on getting these approvals. Franchisor requires $250K net worth with $100K liquid after purchase of business.

Marcia Bowron listed and sold this business

The Overlook

ELEGANT EVENT CENTER IN NE HOUSTON WITH REAL ESTATE

This fantastic opportunity to own one of the most elegant event centers in the NE Houston area with close proximity to IAH – providing picturesque spaces and dining for weddings, corporate events, private retreats, reunions and more. The beautifully designed facility is filled with southern plantation charm and is located on a gorgeous 22-acre green space filled with walking trails, ponds and woods. All inclusive (tables, chairs, lights, sound, linens and decor) - there is no need to rent from outside sources. Their clients are able to choose from a host of options of fabrics for tablecloths, napkins, overlays, etc using their extensive on-site studio for decor and linens. Along with the client’s design, they assist with the entire ballroom layout, agenda and timeline and put all the pieces in place for the client, so their event is effortless. Over 30,000 guests a year are entertained at this venue. This geographic area of Houston has become a thriving business center and accommodations for rental venues to hold corporate events, parties and large meetings are being sought out by event coordinators, executive assistants and business owners. From an intimate gathering for 20 to a grand event for 400, there are several spaces for the client to choose from: 3 small reception settings (up to 32, 72 and 100 guests), 1 medium reception setting (up to 184 guests), largest reception setting (up to 432 guests). Ceremony settings consist of a chapel, and 3-4 outdoor terrace/patio settings. Facility currently holds a TABC Liquor License. Financially the venue was on an upward trend since opening in 2013, but owner suffered a debilitating stroke late 2017 and has been away from the business ever since. Because seller was so involved, hands on, and sole sales person, 2018 has seen a drop in booking/sales. New involved owner should be able to turn it around quickly. Please be discreet, employees are unaware the business is for sale.

Marcia listed and sold this business.