Certified Business Brokers
The Business Transfer Newsletter
July 2015
Quick Links 

How Much is Your Business Worth? 




Question Ask The Experts
Ask The Experts

We want to hear from you. Send in your questions, and we'll have your answers in our next newsletter.

Click Here




 5 Working Capital Management Strategies




Selling A Business Organized As A "C" Corporation: When It's Not A Tax Problem



Join Our Mailing List






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.


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 


The IBBA And M&A Source Market Pulse Survey Report Q1 2015

The sales of businesses continues to strengthen across all market sectors in the first quarter of 2015 based on the results of the 1st Quarter 2015 Market Pulse Survey published by the International Business Brokers Association (IBBA), M&A Source and the Pepperdine Private Capital Market Project. The reasons attributed to the increase in businesses sold are consumer and market confidence and low interest rates for buyers.

The International Business Brokers Association (IBBA), M&A Source and the Pepperdine Private Capital Market Project provide a quarterly report and evaluation of the market for businesses being sold in Main Street markets (values under $2 million) and lower middle markets (values $2 million to $50 million).
This is the only report for the sale of these types of businesses. The 1st Quarter 2015 survey was completed by 231 business brokers and M&A advisors, representing 39 states. CBB contributed to this survey.
More than half of the respondents (57 percent) had at least 10 years of experience in the M&A industry.
Participating advisors reported closing 143 Main Street market transactions and 20 lower middle market transactions in Q1 2015.
Some of the highlights of the report include:
  • 59 percent of brokers characterized the Main Street businesses under $500,000 as a buyer's market, while larger companies - those valued at $1 million and above - were characterized as being in a seller's market.
  • The majority of advisors are still pointing to a buyer's market in the Main Street sector, but the strength of that sentiment has weakened considerably over a year ago. A year ago, 77 percent of advisors indicated the smallest deals (under $500,000) faced a buyer's market, but today only 59 percent feel that way - a record low since the survey began.
  • Valuations for Main Street deals stayed roughly the same or had slight increases. 65 percent of Q1 transactions under $499,999 included multiple Seller Discretionary Earnings or SDE of 1.75 to 3.0, while 76 percent of transactions between $500,000 to $999,000 had SDE multiples of 2.0 to 3.00.
  • Expectations and optimism about the future continue to rise. All market sectors showed a growth in business owners wanting to sell with a mean of 3.2 or better (on a five-point scale) for all deals valued at $500,000 and above for Main Street transactions, a mean of 3.2 for the $2 million to $5 million sector, and a gain of 0.9 point jump in mean to 3.5 in the $5 million to $50 million.
  • Retirement ranks as the number one reason to sell across both lower middle market sectors, ranking as 44 percent and 50 percent in the $2 million-$5 million sector and the $5 million-$50 million sector, respectively. Retirement also ranks as the number one reason to sell across all Main Street sectors.
  • The average time to close for Main Street deals rose for every Main Street sector, jumping by as much as two months for businesses in the $500,000-$1 million sector. For lower middle markets, the time to close remained relatively flat, at 7 months in the $2 million-$5 million sector and 11.5 months in the $5 million to $50 million sector.
Buyers looking at buying a company in the Main Street market can still maintain an advantage when buying a smaller firm, but the market continues to shift toward a seller's market. For those buyers looking to make a purchase with a $1 million to $2 million deal, they are moving into a neutral market.
This is a national report. It does not include statistics for individual States.


If you would like to view the entire report, click the following link.


IBBA and M&A Source Businesses sold in 2015 Report



What Drives The Value Of A Restaurant?   
Selling a Restaurant
The valuation of a restaurant is much like any other business valuation. But, there are certain factors unique to the restaurant industry. The following are key elements that impact the valuation of food and beverage businesses. The list is not in any specific order.

1. Location, Location, Location
2. Lease / Rent
3. Age & Condition of Equipment
4. Stability of Earnings & Revenues
5. Hours of Operation
6. Conversion Potential
7. Food & Labor Costs
8. Cleanliness
9. Staff
10. Reputation & Goodwill
11. Licenses
12. Growth Potential
13. Reason for Sale


Jetco Delivery


Another Company CBB sold is in the news!

We sold Jetco in 2006 and it was named one of Houston's
fastest-growing private companies in 2011. Last year, the company earned $31.5 million in revenue.

See the full article in the Houston Business Journal


Ask The ExpertsQuestion Ask The Experts

Is SBA 7(a) financing still available? I heard that the funds ran out.


Yes, the Small Business Administration 7(a) loans resumed after Congress raised the lending ceiling on Monday. We were watching this closely, hoping Congress didn't take a late-summer recess before taking care of this issue.



Read The Entire Article on U.S. News & World Report


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.


Texas On Track For Strong Future


Texas names land on Forbes' Richest Families of 2015 list


Texas Oil Production Set To Top Record Despite Slump 


Houston has tightest industrial market in Texas 


Texas Sees $15.5 Billion in Construction Projects in Q2 2015 


Texas Oil Production Set To Top Record Despite Slump 


Corporate Relocation Isn't Slowing Down As More Companies Make Texas Home 


The Economist: Information technology one reason Texas economy is so resilient 


Space Tourism Just Got Another Big Boost......In Houston 


Patent Reform Bill Endangers Texas Research On New Drug That Can Treat Ebola 


The Best & Worst Cities For 1st-Time House Buyers: Texas Takes Half Of the Best Top 24 Cities 


Texas : The Best Place for an Energy MBA 


Texas Added The 3rd Most Jobs Nationally In June  


Houston 'burbs best place in Texas to start a business  


The Best Cities To Get A Job Right Now - Texas has more cities on the list than any other State


18 Residential Projects On Tap For Downtown Houston  


No Economic Mess in Texas - Wall Street Journal


Technology industry helps buoy job growth in Texas  


Number of M&A, PE deals grew 33% in 1st half 2015, but value flat  


Private Equity Firms Fishing in Texas Medical Waters 


Another California-Based Company, A High-Tech Firm From A Fashion Standpoint, Is Relocating To Texas 


Texas Is An 'Innovation Champion' In Tech Sector 


Oil Shock May Slow Texas, But Its Miracle Is Beyond Crude - Investor's Business Daily


The Cities Creating The Most White-Collar Jobs by Joel Kotkin on Forbes - Two Texas Cities Make The Top 10 List


California Solar Energy Software Company Opens Houston Office, Plans Hiring Spree  


South Carolina Energy Company Moves Regional HQ To Houston, Goes On Hiring Spree 


The Economist: Texas Is A Fast-Growth Up-and-Comer On The World Economic Stage 


Boom Times For Healthcare Mergers - Reuters


Study: California, Texas See Most Private Equity Investment In 2014  


What Are Private Equity Firms Searching For? - Texas & Houston are High on their Radar


California Loses Another Company To Texas: Medical Device Firm Is Moving Its HQ To Texas


Texas Gives Silicon Valley A Run For Its Money


US Job Market Grew Fastest Since December 2014 with Small Business Taking the Lead


Texas housing market still faster than the rest of the country, despite energy sector declines 


Texas Association of Business Brokers - Houston Chapter  International Business Brokers Association Texas Restaurant Assocation LogoM&A SourceACG Logo