The Business Transfer Newsletter
February 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.
"The best library of articles about how to sell your business" - 
says The New York Times
Business Owners:
Sell Now Or Forever Hold Your Peace
Forbes Article

Don’t miss what may be the best time to sell your business. Events have created an unprecedented sense of urgency amongst business owners to consider selling their businesses. The unexpected Georgia election results and resulting Democratic sweep all but guarantee that capital gains rates will increase, consistent with Biden’s tax plan.

The impact for business owners will be substantial— If rates double as proposed, owners will need to sell for 33% more just to receive the same after-tax proceeds. While no one knows exactly when these changes will go into effect, the conclusion is similar: Owners should consider expediting their sale process to sell within this limited window or risk delaying their exit indefinitely with the hope that a future sweep by a Republican administration will revert rates back. While higher valuations and growth can help overcome these tax burdens, both will likely encounter headwinds over the medium-term. Don't miss what may be the best time to sell your business.
It's a Seller's Market as M&A Interest Returns
to Pre-Pandemic levels

With investors flooding the market with capital to engage in mergers and acquisitions, it's a sellers' market right now.

Sell Sooner...There's Never Been a Better Time
For Business Owners to Make a Move
What Does New Owner Training Involve?

When you sell your business, it's common practice to provide training for the new owner. But what does new owner training involve? What are your responsibilities? And how long will you be "on the hook" after the deal has closed?

The whole idea of training the new owner may seem alien to a seller. After all, why would someone purchase a business they aren't capable of operating? But in reality, people with relevant backgrounds, can and do, with limited training and experience regularly purchase small businesses. They probably have experience in either the industry or business management aspects, but maybe not both. Seller training gives them a crash course in their area of weakness and prepares them for the real world challenges of running the company on their own.
The fictional Willy Wonka handed off his chocolate empire to a little boy who was a loyal Wonka customer, someone who was chosen with great care through a selection process designed to weed out all but the most dedicated Wonka devotees. Wonka was able to choose his heir apparent and ride off into the sunset a happier entrepreneur.

If you are a business owner thinking about how to leave your business, by using this four-step process, you will be able to narrow the list of exit routes to determine which one is best for you. A good exit plan is one that is anchored on your business value. The important thing is to start early.
The Future of Texas (New York Times)
You can make a case that the U.S. state with the brightest long-term economic future is Texas.

It’s a more affordable place to live than much of the Northeast or West Coast and still has powerful ways to draw new residents, including a thriving cultural scene, a diverse population and top research universities. Its elementary schools and middle schools perform well above average in reading and math (and notably ahead of California’s), according to the Urban Institute.

These strengths have helped the population of Texas to surge by more than 15 percent, or about four million people, over the past decade. In the past few months, two high-profile technology companies — Oracle and Hewlett-Packard Enterprise — have announced they are moving their headquarters to the state, and Tesla may soon follow. As California was in the 20th century, Texas today looks like a state that can embody and shape the country’s future.
How to Avoid the Most Common Mistakes in Selling Your Business
Your business is the key to your legacy and your future. If you decide to sell, it pays to do it right.

There comes a time in the life of every business owner when you need to move on to something new, retire, or let your business go to someone with new energy and ideas.

As a business advisor, I always have qualms about recommending this move, because the process of selling your business can generate more pain and loss than continuing to run it yourself.
Motivated absentee seller. This name-brand spa franchise located in an upscale, high-visibility shopping center on the west side of Houston. This location has great reviews and with approximately 400 active members, recurring revenues is the best thing about this business!

During the Covid shut down, they still brought in over $23K/month recurring revenues, even while they were closed! With over 100 walk-in prospects per month, an attentive owner or manager could convert just a small percentage of them to memberships and increase revenues dramatically! Part of a popular franchise of over 100 stores nationwide and in business for over 10 years.

Marcia Bowron listed the business and sold it.
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