Sell My Business in Missouri City Texas?

You may think to yourself, can I sell my business in Missouri City Texas? Business Acquisitions can do it! Just call our number 713-588-0200 . Our normal business hours are 8 AM to 5 PM, Monday through Friday, with hours outside that range by appointment. Our brokers are certified by the Finance Training Society, and are members of the International Business Brokers Association. We are happy to offer a free consultation on the potential sale value of your business, and will work with private equity firms to find a seller who fits your needs.

If you woke up one day thinking “I might want to sell my business” then we should talk. Business Acquisitions can sell most businesses valued between $500,000 and $10,000,000 assuming that they are profitable, have been in business for three or more years, and have verifiable financial and tax records. The most important aspect to any buyer or lender is usually whether or not the company makes money, and if so, how much, how consistently, and how reliably. Some will place more emphasis on name recognition or reputation, recurrent client base, or assets. Most buyers, however, are taking out a loan (usually an SBA loan) in order to buy a business, and if the company makes no money on paper, it will almost always be unsellable.

How Does Business Acquisitions Sell My Business?

The process starts with us getting to know more about your company, management, business operations, and financial situation. Assuming we are a good fit to sell your business, we will then review your company’s financial and tax documentation thoroughly. We will also provide a risk assessment, and take into account various other proprietary factors, as well as comparable industry business sales. After our analyses, we typically arrive at several different approximations of value and perform a weighted averaging to determine a Most Probable Sale Price (MPSP). That price is fully defensible against buyer and lender questions and holds up to due diligence, resulting in a smoother closing process and average closing time. The Seller decides whether to list at the MPSP, or higher (if they can wait longer to sell the business) or lower (if they wish to sell the business faster).

After that, we list the business to our internal and external networks of buyers in a confidential manner that protects the seller from employees, customers, and competition finding out the business is for sale. For instance our sample company, Swan Lawncare in Houston might be listed as “Established Lawn Care Company in Greater Sugar Land/Houston.” From there, once we receive inquiries from potential Buyers, we vet them by determining their proven funding level, their experience in similar industries, and general qualifications. This removes tire kickers from the process and helps to ensure we don’t end up halfway through the due diligence process only to find out the money will not be approved.

Vetted Buyers are given a Non-Disclosure Agreement to sign (and sometimes have one of their own for us to sign). In some cases, a Seller might require final approval even after a Non-Disclosure Agreement is signed. Either way, this helps to ensure that no identifying company information is publicly released until everyone is legally sworn to secrecy.

After that, the Potential Buyer is sent our extensive Confidential Business Opportunity Report (CBOR). The CBOR is typically at least 30 pages, and details everything from the company financials to its history, strengths, weaknesses, competition, risks, local market demographics, and more. The CBOR is something of a one-stop shop for 90% of a potential buyer’s questions and allows them to make a decision more easily as to whether or not they wish to proceed with the process. It also acts as supplemental documentation for lenders to examine. The CBOR that Business Acquisitions produces exceeds all other brokerages in its ability to represent the company for sale.

After reviewing the CBOR, if a Potential Buyer has further questions or concerns, Business Acquisitions handles as many of those as possible without interrupting the Seller’s normal business. In fact, prior to this point, from the time of listing, the Seller need not be bothered at all, though we are certainly ready to talk with them at any moment they wish. Once a Potential Buyer has decided they want to proceed with the purchase, they will either submit a Letter of Intent (LOI) or a Term Sheet, or perhaps will go straight to drawing up a Purchase Order. Business Acquisitions will act as a mediator and negotiator in these cases, as well as a central point of contact for any accountants, lawyers, or other third-party agents brought into the process.

From there, the Due Diligence Phase begins. Buyers and Lenders will have additional questions, paperwork, and financial documents necessary to the process of determining if the sale is allowed to go through. At this point, the seller is advised to bring their office manager into the loop, or even consider hiring a temporary specialist to assist with gathering and filling out the necessary forms and reports.

Once the Due Diligence Phase begins to wind down, a closing date is set, and the parties involved sign off on the closing. If “Table Funding” has been requested and approved during the loan process, the funds will typically be wired the same day. If not, the funds are usually wired anywhere from 1-10 business days after the signing.

What Happens After I Sell My Business?

After you sell your business there will be a paid transition period, during which the Buyer often retains the Seller for a short time (typically 30 days) to show them the ropes and train them in normal business operations. Additionally, in cases where primary clients (those exceeding 10% of annual revenue) exist, the Seller might be obliged to provide introductions between the Buyer and those clients. Additionally, Purchase Agreements typically include a Non-Compete Agreement, which includes an understanding that the Seller will not operate a similar business within a certain minimum time frame and territory range. As an example, the seller of Swan Lawn Care might not be allowed to open up another lawn care business within 50 miles of the DFW Metroplex for a period of 5 years. The specifics of all these points are negotiated prior to signing the Purchase Agreement so that there are no surprises.

Can I Keep Working After I Sell My Business?

Certainly! Though in most cases you will not be allowed to work for the company that was sold (especially if an SBA Loan was used by the Buyer) except in the occasional consulting capacity, and sometimes not even then. Other loan types may be less restrictive. Outside of the Sold Company, you can work anywhere doing anything that the Non-Compete Agreement does not expressly forbid. For instance, the Seller of Swan Lawn Care would almost certainly be allowed to work at or open up a restaurant within the territory of the Buyer, but the Non-Compete Agreement might prevent them from working for any lawn care competitors within a certain radius of the territory—at least in any sort of management capacity.

Have additional questions or concerns? Please Contact Us!