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ARTICLES
Selling Texas Businesses
Since 1974
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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.
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"The best library of articles about how to sell
your business "..... says The New York Times
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Is It The Age Of Aquarius For Selling Businesses?
You may have been reading or hearing that conditions in the business-for-sale marketplace have been synchronizing and harmonizing.
The stars are aligning, charting an agreeable economic climate in the acquisition universe for Baby-Boomer Business Owners.
Anyone reading our newsletters has been kept aware of the stats, and the numerous articles written on this subject recently from all the big-name business magazines, media news outlets, and others like us: "There's a perfect storm approaching for exiting business owners," "Why you should consider selling your business now," "Small businesses are selling faster than ever," and "Get set for greater intensity by serious buyers."
It's about timing it right. And right now, the time is golden.
The ideal time to sell a business is when....
- The stock market is hot/high (it is)
- Interest rates are low (they are)
- Inflation rate is low (it is)
- Financing is abundant (it is)
- Market is brisk (it is)
- When demand is higher than supply (it is)
- Buyers abound (they are)
- Pricing is favorable (it is)
- The company is performing well (is it?)
- The owner is ready (are you?)
Today's economic atmosphere and the aging population of boomer business owners seem to be aligned. The perfect window for an exit.
The moon may not be in the seventh house. And only an astrologer knows for sure if Jupiter has aligned with Mars. But we can all recognize the glaring signs hinting that now is looking like the Age Of Aquarius for selling businesses.
In astrology the Age of Aquarius mimics the ancient Mayan prophesy for the next Golden Age. The 5th Dimension sang about the "dawning of the Age of Aquarius...mystic crystal revelations....let the sunshine in."
We don't need a crystal ball to see the revelations. We're shining the light on the clear circumstances that signal that the timing could not be better for owners of good-performing companies in many industry sectors to consider selling. With prices and demand at current levels, it could be a good time for even some not-so well-performing companies to sell.
However, for those who have not prepared for such an event, start first with understanding the aspects of your business that determine its salability.....from the financial aspects to the other drivers of business value. Get to know the process and what to expect. Gain an understanding of the motives of your most probable buyer, anticipate their questions, vet potential problem areas of your business that might inhibit or delay an eventual sale. These are all keys to having a positive result in the business-for-sale world.
I suggest that it's better to look back on this auspicious time and know you sold your company at the right time, or to look back and know that you at least gave appropriate consideration to this subject.
Is this window in time your opportunity to enjoy your golden years?
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Premier Garage
As part of the largest whole-home organization franchise in the nation, Tailored Living, the company provides personal design services using 3-D software, manufactures and constructs, and professionally installs closet and storage organization systems for all areas of the home. This industry is projected to increase 4% annually to $9.4 billion by 2017. This franchise has won the prestigious "Best of 2014" for "client satisfaction" and "design." The franchise was also featured on one of NBC's "home rescue" reality shows.
This Premiere Garage franchise consists of three franchise territories that encompasses the high-growth North Harris, Montgomery, and Liberty County areas of Houston. Keith Garrrett, having started the business in 2006, was ready to retire and selected CBB to handle the sale process.
Colin Eller, the buyer, with a desire to increase his income, independence, and use basic skills gained from previous jobs and owning multiple rental properties, decided that Premier Garage fit the criteria. He had been looking for a business for more than a year and had reviewed many businesses for sale.
Premier Garage was on the market for only 45 days before the contract to purchase was made between Garrett and Eller. However, the deal took six months to close due to the various requirements of the Franchisor, the Franchisor's attorneys, Allegiance Bank (the SBA Lender that financed the deal), and the Bank's attorneys.
Thank you to Tom Pence in his patience and coordination throughout the process.
Rose Stabler listed the business and Tom Pence sold it.
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Advantage Travel, Inc.
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Pictured left to right: Frank Stabler (CBB Broker), Toni & Alan Meliti (Sellers), Vernon Tyger (Buyer)
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Advantage Travel, Inc. is an established, well-known travel agency in Houston for 30 years with a solid base of loyal commercial clients. When Toni Meliti, the owner, decided to join her husband, Alan, in retirement, she chose CBB to handle the sale process. Vernon Tyger, a CPA and management consultant, determined that the agency would be a great fit, combining his desire to own a successful business with his love for travel. Vernon's wife, Lynn, is a travel agent and will assist Vernon in running the agency.
Frank Stabler listed the business and sold it.
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Howard Safe & Lock
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Pictured left to right: Roy Orrin & Janice Yetter (Sellers), Dan Bubien (Buyer), Peggy Tate (CBB Broker), Don Green (Buyer's Accountant)
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This This locksmith company was started in 1946 by the Seller's uncle. In 1968, when Roy, the Seller was a teenager, he started working in the business. Then, in 1988, he and his wife, Janice, bought the company from his uncle. Altogther, Roy has worked in the business 47 years!
Dan, the buyer, has worked in small family-owned businesses before but never one of his own. Although Janice and Roy were eager to start traveling together, they agreed to continue working in the business on a part-time basis for as long as Dan wants them around. Dan said, "As far as I'm concerned, Roy is still the boss and I'm just a manager trainee."
The buyer had reviewed five other businesses within the six months he'd been working with us. Seller financing was part of the deal.
Peggy Tate listed and sold the business.
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Dew Florals
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Pictured left to right: Elaine Yi (Seller), Ryan DeGennaro (CBB Broker), Robert Trevino & Dan Orofino (Buyers)
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Dew Florals had been operating since 2003 and Seller, Elaine Yi, was ready to think about running a business in a different industry. Buyers, Trevino & Orofino, have 20+ years in the industry and live in the general market area of the shop. The are renaming the business to Red Stem Florists. They've established a beautiful online website to gain additional market share from the area. Be sure to check out the new website: www.redstemflorist.com
Ryan DeGennaro listed and sold the business.
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Brazilian Grain Coffee
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Pictured left to right: Marcia Bowron (CBB Broker), Viviane & Carlos De Cunha (Sellers), Anthony Milton, Wayne Bunch, & Elizabeth Townsend (Buyers)
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In 2014 Carlos & Vivian De Cunha opened this authentic Brazilian food and coffee venue that transports you to the streets of Rio during Carnival with its atmosphere. With WiFi available, many business and student customers spent time sipping lattes while working on their laptops and iPads. But the Cunha's other, larger restaurant in Brazil needed their attention, meaning they had to sell the business.
The buyers are partners together in ownership of Brown Bag Deli, a multi-location deli chain in Houston, and wanted to use this great location for their other restaurant concept, LouLou's Beignets.
The Buyers offered this quote:
This well-established tradition of enjoying beignets in the French Quarter of New Orleans has become something of a pilgrimage for many. Now LouLou's Beignets will bring the sweet taste of Louisiana paired with great coffee to the heart of The Woodlands. We are excited to offer a unique experience whether for breakfast or as a treat that can be enjoyed throughout the day. Visit our website www.myloulous.com or follow us on Facebook for opening and event updates.
This was the only business the Buyers looked at with our firm. The business was sold within 4-1/2 months of going on the market.
Marcia Bowron listed and sold the business.
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Ask The Experts
Question:
How do you pre-qualify buyers who want to see my business?
Answer:
Prior to discussing confidential information about businesses for sale, we require prospective buyers to complete certain forms that serve two purposes. They protect the interests of the business owners during the sale process and enables us to competently assist buyers in their acquisition search. These documents are necessary to the process and are defined below.
Confidentiality Agreement
This document is also known as a Nondisclosure Agreement ( NDA). It registers the buyer's receipt of confidential information regarding a business for sale. It is also the buyer's pledge that the confidential information is not to be shared or used for competitive purposes. It also protects the our position as the intermediary in the introduction of the buyer to the seller's business. Personal Financial ProfileThis is NOT a credit report or an official document that requires confidential information such as a social security number or your bank statement. This form requires the buyer to assess his/her financial capabilities. It outlines the buyer's financial condition in terms of assets, liabilities and liquidity to which the buyer attests to its truth and accuracy. It provides insight to the buyer's availability of funds for a down payment, the purchase price range, and net earnings requirements for an acquisition. It will help narrow the focus of the businesses to research as possible candidates for purchase consideration. Buyer Background Profile The Buyer Profile is more or less an Interview Form that outlines business experience and other credentials that would signify a person's qualifications to run a business. The information, coupled with financial capacity outlined in the Personal Financial Statement, will help match businesses with the prospective buyer's background and interests.
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Texas Economic News
