The Business Transfer Newsletter
April 2022
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~



15 Steps To Set Your Company Up
For A Successful M&A Transaction

When selling a business, maintaining proper inventory levels is essential to maximizing value. Don't let poor inventory management drag down the value of your business.

Inventory is an ever-renewing, moving, and perishing thing. The longer it hangs around, the less valuable it gets, and eventually dies as a viable product. If it's not turning over fast enough, the inventory begins to stop-up cash flow and drain capital coffers. Inventory is a dollar-for-dollar part of the buying and selling process and buyers will make a close assessment of it prior to closing a deal.
Why Business Owners
Don’t Focus on Exit Planning

No ten-point list can ever hope to supply you with every imaginable consideration when it comes to buying a business. The following factors – listed in no particular order – should be a good jumping-off point, but feel free to expand on them and dig even deeper to decide that the business you plan to buy is right for you.

1. Consider the History – Plan For the Future
Business price is typically based on historical factors – real estate prices, equipment and inventory value, the net earnings the business brings to the owner. By considering what you can do with the business once you took over should be a factor in determining whether it is a good buy. While future potential earnings is dependent on the efforts of the new owner, it is not usually a factor that is heavily weighted into the asking price of the business but can be the reason it is purchased and brings a price that is towards the higher end of the value range.

2. Look For a Solid Foundation
A business that has been shown to flourish despite past financial downturns is one worth considering. As the saying goes, “You can’t make a silk purse out of a sow’s ear.” This means that a weak company will hardly grow into a great one simply by making a few changes. With all the terrific opportunities out there, it hardly makes sense to buy a business simply because the price is right.


In the beginning of any business, there always comes a point where a decision will be made whether to take on a partner or run the business solo. In the early stages, opportunities can be fatal if important questions are overlooked because of all the excitement. Partnering may be an idea because of finances or because someone has skill in an area you lack. It’s important to go into your venture with eyes wide open. Partnerships can be rewarding with up front open communication. If you already have a partner already, its still worth sitting down and discussing some hard questions with them. Weigh all options by considering these six important issues >>>



Who Are The Buyers For Privately-Held Companies






Most owners of small and medium-sized businesses do not think about exiting their business nor do they plan for that inevitable day. They enjoy their work and their lifestyle. Many of them do not even realize that their business may be an attractive acquisition target.

If you have been thinking about selling, this article will help you see your company as a potential acquirer might see it. Understanding who the buyers are and their respective acquisition criteria equals better preparedness when the time comes to sell. Having realistic expectations and understanding the factors that drive value in the marketplace will further bolster an owner’s readiness for a successful sale. Proper valuation and presentation to the most likely buyers is crucial to achieving a sale for the best price in the shortest time frame possible.

There are three main categories of buyers of privately-held small to midsize businesses: The Individual Buyer, The Investment Buyer, and The Strategic Buyer. Each category has distinctive characteristics and motives for making an acquisition. The price each is willingThe price each is willing to pay is directly proportional to their motive.to pay is directly proportional to their motive.
  • M&A and Business Brokerage Firm Since 1974
  • Historically, we have sold >60% of the businesses we listed vs. 25% Industry Average
  • Consistently sold businesses within 94.5% of appraised price
  • We specialize and are experts in the Greater Houston, Texas market
  • Closed approximately 3,000 business transactions in Texas
  • We are NOT a franchise
  • Authority on business transfer in our profession
  • Founding Members of the International Business Brokers Association (IBBA)
  • Founding Member of the Texas Association of Business Brokers (TABB)
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Houston, TX 77079
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