The Business Transfer Newsletter

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August 2020

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.

Check Out Our Achives

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

says The New York Times

Market Pulse Survey - 2nd Quarter 2020

Presented by IBBA, M&A Source, and in Partnership

with Pepperdine University

Small Business M&A Shaken, but Resilient

The M&A market continues to be somewhat resilient, although sellers face hurdles and delays in Q2 2020

Market Pulse Survey - 1st Quarter 2020

Presented by IBBA, M&A Source, and in Partnership

with Pepperdine University

Cash at Close

"Our assumption is that Q2 2020 stats will reflect less cash at close for lower-middle market companies and more in earnouts or other alternative financing," said Lisa Riley, principal at Delta Business Advisors. "For Main Street deals that use SBA funding, earnouts are not an option. So, we'll probably see larger seller notes or continencies there."

Why Are Owners Selling

Know Your Buyer

Buyers Are Already Motivated

Fueled by SBA Incentives

SBA relief efforts are incentivizing buyers to move ahead with business acquisitions. Per the SBA website, “the SBA will pay six months of principal, interest, and any associated fees that borrowers owe for all current … as well as new 7(a), 504, and microloans disbursed prior to September 27, 2020.”

This is a massive incentive. The SBA is covering (not deferring) your loan payments for six months. What’s more, they’re taking care of the loan fees for you. On a loan of $5 million, SBA fees could be about $$138,125 or more. That’s free money for buyers who move now and get their loan issued before the September 27 deadline.

Buying an Existing Small Business

Beats a New Franchise

A few years ago I was a guest on KSEV Radio AM 700 with host Aubrey Thoede and had the opportunity to discuss a subject that many call-in listeners wanted to learn more about....starting their own franchise. But buying a new franchise is not the best way to go about achieving the "American Dream."

Industrial Paint & Coating Distribution Company

in Houston

The Founder of this Industrial Paint & Coatings Distributor in Houston started out working for a large industrial paint and coatings manufacturer/distributor. At that time she identified that smaller and specialized users' needs were not being satisfactorily met. When she started her own business, she tailored the service and products to offer a wider range of container sizes and "just in time" delivery options. After 20 years of operating a rewarding and profitable company, she made the decision to retire. She selected Certified Business Brokers to find a qualified buyer, in a confidential manner, who would continue to do right by her loyal customers."

The Buyer is a second time buyer at CBB. He’s a mechanical engineer who’s buying businesses and running them with his family. He and his brother plan to operate this one until they can hire someone to oversee day to day operations.

Wells Fargo provided SBA financing. He even got a $100K line of credit at closing.

Hal Poel listed this business and Chris Adkins sold it. It was sold in six months.

Family Plumbing Company in Houston

This family company has been in business for over 60 years and was started in Wallis, just outside of Houston, by a father who got his registered Master Plumber License in 1968. His children worked in the business as plumbers, and his daughter operated the office. The owner passed away after we had it listed, but the family was still able to sell and retire.

The Buyer is a younger business guy with years of experience working at big corporate plumbing companies who was looking to take over a business that he could build into something for himself and his family.

The business was on the market for nearly two years, but we finally got the deal done. Chris Akins listed the business and sold it.