Certified Business Brokers
The Business Transfer Newsletter
January 2015
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In The New U.S. Congress, House Committees Will Carry a Strong Texas Accent  



Depreciation Tax Extenders Big Bonus For Business Owners



An In-Depth Look At The Non-Compete Agreement



What Tenants Need To Know About Their Commercial Lease 



6 Things You Must Know About Experienced Buyers Before Selling Your Business


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Selling Texas Businesses

Since 1974  





























































































Selling Texas Companies Since 1974.


Our monthly newsletters provide information about buying or selling a business, current economic conditions, and highlight some of our newest business-for-sale opportunities.  Our record of

professionalism and reputation as a top firm in the nation has a lot to do with our people -- a knowledgeable long-term administrative staff and a very experienced team of professional brokers. We are headquartered in Houston and have offices in Austin.


Check Out Our Archives

"The best library of articles about how to sell

your business "..... says The New York Times

Businesses For Sale

    Review All Listings                         Manufacturers For Sale 

    Wholesale / Distributors                 Service Businesses For Sale 

    Auto-Related Businesses                Child Care Centers For Sale   

                          Restaurants - Fast Food - Bars 



Featured Business Listing

* Featured Restaurant Listing 


Reliable Financial Data Is A Top Driver Of Business Value

The lack of financial integrity is one of the most common hurdles encountered during the process of selling a small business. What is being bought or sold is primarily a future stream of income. Not the assets or property of the business, but the income these assets will generate in the future.

Since future income is impossible to definitively compute and hard to estimate, the company's financial history, at least, provides concrete facts and insight to future performance. So, reliable financial records are not only a critical element of business management but also support the business' historic profitability, operational efficiency, and its solvency.

Most importantly, however, reliable financial data is the impetus for two critical events to occur in successful small business acquisitions:

  1. the ability for a prospective buyer to forecast the future probability of growth and prosperity of the company
  2. the likelihood that a bank will provide financing for the acquisition

If a buyer faces a seller of a business who asserts that the company has been making $1 million per year for the past three years, the seller will be required to prove it. If the seller then produces past financial statements that do not support that claim, there is either no deal, a reduction in price, or most likely, the buyer is gone.

Therefore, review your business financials now to avoid surprises later when a buyer is performing due diligence. Be sure they accurately reflect your operation and are up-to-date. You should be ready with the answers to the questions that will assuredly be asked.

Buyers want to see a detailed financial history and will not pay top dollar for mediocre records. To make sure your company remains attractive and can win top dollar when it is time to sell, here are 11 tips for keeping your business in sale-ready shape: 


 Elite City Kids Childcare & Learning Academy  

Pictured left to right: Marcia Bowron (CBB Broker), Aisha Barrie (Seller), 

Nagiah Pilkinton (Buyer)

This childcare company, consisting of a group of three centers in Houston, was started by an owner with a love and passion for childcare who grew up in her grandmother's daycare centers. All three centers are at capacity and have waiting lists. The daycare centers are strongly branded and each center has a licensed Director, Assistant Director and Cook on staff. There's even a Curriculum Director on staff that insures a consistent teaching program across all three centers.


The Buyers, Nagiah and Gregory Pilkinton, had been looking for a business to purchase for six months before finding Elite City Kids, which was the first and only business they looked at with our firm. They both have strong corporate business backgrounds but never owned a business. Ms. Pilkinton said, "This is an exciting opportunity for my husband and me. We're a bit nervous as new owners, but we feel that this opportunity will prove to be a very good financial decision. It's been a smooth process with the help of CBB and Icon Bank, along with the support of the previous owners."

Aisha Barrie, the seller, will be providing transition assistance to the Pilkintons for a period of time. She plans to eventually relocate and travel to do work with her Childrens Foundation overseas. Ms. Barrie is a busy lady. She has a MBA in Finance & Management, is a Real Estate Agent, owns Cheer Ready Dance Camp, is a Financial Analyst for a multinational energy corporation, and is a former Houston Rockets Basketball Team Power Dancer.


We thank Ms. Barrie for sharing this information regarding her experience with us:


"The process was so well-coordinated by CBB.  The initial valuation and exploratory meeting was done quickly and efficiently, unlike many other brokers who take so long to respond.  The many meetings with various qualified buyers who wanted to purchase the business gave me the opportunity to select the best new owner who would keep the business successful. Furthermore, CBB kept really good open communication throughout the whole process so I was always aware of the timeline and steps until closing.  CBB did a good job and I highly recommend them to owners who want to sell their business and to anyone looking to buy one."


Rose Stabler listed the business and Marcia Bowron sold the business.


Payless Insurance Agency  

Pictured left to right: Hashem Hashemi (Seller),

Peggy Tate (CBB Broker), Kareem Ali (Buyer)

This insurance agency, started in 1996, is very well-established with many loyal, repeat customers providing stable, recurring income. The Seller, Mr. Hashemi, and his wife are moving to another city, which forced the sale of the company.

The Buyer, Kareem Ali, has been an insurance agent since 1999 and owns 13 other agencies around Houston. Payless, located in a desirable area of Houston where he wasn't already operating, was a seamless addition to his business.


Since bank financing was not involved, the business was sold in 31 days from going to market.

Peggy Tate listed and sold the business.


Tuscany Bistro

Pictured left to right: Standing -- Stella & Brian Kim (Buyers), Jay Yoo (CBB Broker),

Sitting -- Pili Arano, Sandra & Richard Howren, Nicholas Arano (Sellers)


This attractive Italian Café is located near the Kemah Boardwalk. The restaurant has been established in the same location for 10 years. The menu includes delicious signature Italian entrees and tasty desserts that garner great online reviews. The restaurant had a steady sales increase over the last three years. Some seller financing was part of the deal.

Jay Yoo listed and sold the business.

Ask The ExpertsQuestion Ask The Experts


What happens to the Company when a sole proprietor of a LLC dies & leaves NO WILL? Can the business be sold? If so, who acts on behalf of the seller? 




While we are not a law firm and do not provide legal advice we go to great lengths to make sure our information is accurate and useful. We always recommend confirming legal issues with your attorney.

For Federal Income Tax purposes, a single member LLC can be treated as either a corporation or a disregarded entity depending upon an election the owner makes at the time of forming the LLC.  If the disregarded entity election is chosen, then the IRS disregards the entity and taxable income flows through to the owner as if it were a sole proprietorship (shown on Schedule C of the owner's personal tax return). 


Tax liability and inheritance are two different things. An LLC can survive the death of its single member owner.  This situation is sometimes addressed in the operating agreement of the company. Typically, the transfer of ownership is treated as a transfer to that owner's rightful heir or heirs.  An owner's beneficiary or next of kin will inherit the ownership just as they would inherit any other part of the estate.  Since the owner died without a will, Texas probate law will dictate how the property of the owner will be divided.  It would be difficult to sell a business until the probate court makes a decision on the division of the estate.  Whatever party or parties end up being declared the owner of the LLC, then those parties will have the right to continue running the business or sell the business.


Texas Economic News


We watch economic and market conditions compared to the rest of the country because these factors affect business value. The following articles were all published since our last newsletter.


Forbes America's 10 Fastest-Growing Cities 2015    |  Texas Placed 5 Cities, The Most Of Any State - Houston #1, Austin #2, Dallas, #3, Ft. Worth #8, San Antonio #10 


Texas Must Work To Keep Its Lead....And To Keep Its 'Bragging Rights' 


Economic Trends | M&A Market Continues Strong Run Into 2015


No Recession Seen For Texas Despite Falling Oil Prices  


Tech M&A Deals Have Returned To Their Pre-Crash Levels  


Texas, The Great American Job Machine | Solely Responsible For The 1.2M Job Increase Since 2007  


The Real Reason Oil Prices Plunged  


Gov. Greg Abbott -- "I'll Be Bigger & Bolder" Than Gov. Perry In Luring Jobs To Texas 


What Drove Toyota's Move To Texas? 


Report Indicates Record Buying-Selling Of Small Businesses In 2014 


U.S. Mid-Market Buyers Aggressively Pursuing Acquisitions In 2015 | But, Sellers, Are Holding Off  


M&A Activity In The Travel Industry | Private-Equity Backed Travel Companies Are Taking Over 


Bluer Skies Over Small Companies | Small-Business Owners Are The Most Confident Since 2006 


Can Texas Make Its Mark In The Nanosatellite Industry?  


Texas Or Bust  |  2014 Texas #1 For 3rd Year Running For Interstate & Crossborder Moves To The State 


That Moving Truck You See Is Probably Headed To Texas  


Report  |  Now's The Time To Sell A Retail Business 


Mergers And Acquisitions In Texas Hit Record Levels  


Houston A Top Place To Visit in 2015  


Why New Yorkers Are Rushing For The Exits  


2014 Has Been A Banner Year For Texas Job Creation 


Will Texas Lead America's Journey To High-Speed Rail? 


Economic & Business Leaders From Cincinnati & Northern Kentucky Ask.... | 'What's Up With Texas?' 


From Golden State To Lone Star State    |    How California Firms Are Faring After Moving To Texas  


Study | Texas Has Most Economic Freedom In US


Why Asian Oil Traders Move To Texas Spells Trouble For OPEC  


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