The Business Transfer Newsletter
July 2021

**Check Out Our New Website**
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

Despite Pandemic Fears, A Record-Breaking
‘Frenzy’ Of M&A Activity Is Underway


Drowning in deals: When a pandemic was declared last spring, Paul Aversano feared the worst.

Aversano leads the global transaction advisory group at Alvarez & Marsal, which works with dealmakers across the corporate world and private equity. As stock markets plunged, investors turned their attention away from new acquisitions and toward shoring up their existing portfolio companies. It seemed like the industry-wide pipeline of deals was in danger of drying up.

“I remember last year telling my CEOs, best estimate, I think our business will be down 50%, and I’d be thrilled if that was the case,” Aversano said.

Rarely has he been happier to be proven so wrong. Deal activity did tick down during the second quarter of last year. But sooner than anyone expected, the market began to recover. In the end, Aversano’s business actually increased in 2020. And in 2021, acquisition activity of every kind is soaring to unprecedented heights.
When is the Best Time To Sell?

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.
Why 2021 Might Be The
Year To Sell Your Business


The pandemic-led market disruption will require many business owners to expend a lot of time and effort to restore, resize or even reinvent their business into order to stay competitive. That’s led some to wonder whether they want to go through that — especially those who may have just righted the ship after the difficulties presented by the Great Recession. And more practically, they may be wondering if they have the capital necessary to make that transformation.

Generally, however, valuations have gone up for those companies that have been able to weather the COVID storm. Buyers are increasingly knocking on owners’ doors, offering some pretty favorable deal terms. That creates the potential for a big year for those who work smart ahead of a sale process to put their business in the best light.

How Much is Your Business Worth?


This is the first question business owners want answered before deciding to sell.  If the business is priced too high in the marketplace, you run the risk of being on the market for too long a period of time and scaring off potential buyers. If it is priced too low, you will be leaving money on the table.

Our daily interaction in the marketplace, our extensive private database of Texas business sales, and access to national comparative data for recent transactions in a wide range of industries keeps us up-to-date and informed about current prices actually being paid. Based on our experience, we can provide you with a value range that you are likely to achieve in the current market so you can make an informed decision as to whether to pursue a sale of the business now or delay to a future date.

We provide this pre-sale business valuation at no cost or obligation to the business owner.

The Sale Process
10-Steps To Sell A Business
?


This is the first question business owners want answered before deciding to sell.  If the business is priced too high in the marketplace, you run the risk of being on the market for too long a period of time and scaring off potential buyers. If it is priced too low, you will be leaving money on the table.

Our daily interaction in the marketplace, our extensive private database of Texas business sales, and access to national comparative data for recent transactions in a wide range of industries keeps us up-to-date and informed about current prices actually being paid. Based on our experience, we can provide you with a value range that you are likely to achieve in the current market so you can make an informed decision as to whether to pursue a sale of the business now or delay to a future date.

We provide this pre-sale business valuation at no cost or obligation to the business owner.


Market Pulse Survey - 1st Quarter 2021
Presented by IBBA, M&A Source, and in Partnership with Pepperdine University

Seller Sentiment, Q4 2019 to Q1 2021

METROPOLITAN GLASS
TOUGH SHIRTS APPAREL MANUFACTURER


Texas Economic Activity Index Increases for Three Months Running
Market Pulse Survey - 1st Quarter 2021
Presented by IBBA, M&A Source, and in Partnership with Pepperdine University
​​​​​​​
Expectations for new clients in the next 3 months, 5-Point Sale
Texas Economic News






























Quick Links
12141 Wickchester Lane, Suite 100
Houston, TX 77079
713-680-1200