Certified Business Brokers
The Business Transfer Newsletter
 November / December  2015
Wrapping up the Year - Preparing for the Next
As this year ends and the temperatures cool,

The malls are all crowded, the kids out of school.

We ask only one thing from Santa and the elves --

New deals for all, we don't just think of ourselves.

Wrapped in clean books, Good margins, And a growth plan that's sound,

To all a healthy new year where good fortunes abound!

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



What To Do When The Sale Of Your Business & Real Estate Are Separate


The 7 Worst Business Buzzwords of 2015



Join Our Mailing List






Selling Texas Businesses

Since 1974 


















































































































Selling Texas Businesses Since 1974.

Check Out our Newsletter Articles, "The best library of articles about how to sell your business," says The New York Times.
Our monthly newsletters provide information about buying or selling a business, current economic conditions, and highlight some of our newest business-for-sale opportunities.
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 


Market Pulse Survey Report - 3rd Quarter 2015
This quarter's report continues to see the pendulum shift to a seller's market across all deal sizes.  While buyers still hold the upper percentage for transactions $1 million or less, the percentage is shrinking.
Companies with strong earnings and good accounting and management records are wanted. Buyers are increasingly market educated and therefore know about more opportunities that are coming to market. They remain patient, but ready to act when a strong company is on the market.
By comparing data from the last five quarters, we can see that valuations are similar for all sectors. There is, however, a slight decrease in the $1 to $2 million valuation range. This tends to be the price range in which individual buyers are priced out and existing businesses owners are inclined to buy, but only when it can add to their current operations.

The study, the Market Pulse Survey, published by the International Business Brokers Association (IBBA), M&A Source and the Pepperdine Private Capital Market Project, also shows that the motivation of buyers changes with the size of transaction. Respondents said that the majority of buyers who purchased businesses for under $1MM made the acquisition to 'buy a job' whereas 70% of buyers of purchased businesses valued between $5MM to $50MM made the acquisition to grow an existing business.
Typically, buyers of small businesses are employed, but they have an entrepreneurial spirit. These buyers are looking for a compelling reason to leave their job security and run a business of their own. The buyers of larger businesses, on the other hand, are making synergistic purchases to add depth and breadth to their existing business.
"Corporate buyers tend to seek businesses that have valuable employees and a strong customer base," says Craig Everett, PhD, Director of the Pepperdine Private Capital Markets Project. "They are often motivated by opportunities to cross sell products and services as well as reduce costs. Manufacturing companies are often synergistic purchases and were the top industry for business sales in the $2MM to $50MM category."
The survey also found that the recent volatility of the stock market did not prevent buyers from pursuing a business purchase, with 75% of surveyed advisors indicating there was no impact from the instability of the stock market. The findings also indicated that sellers did not feel a sense of urgency to go to market because of the upcoming elections.
The Q3 2015 survey which compares the conditions for businesses being sold in Main Street (values $0-$2MM) and the Lower Middle Market (values $2MM -$50MM) was completed by 192 respondents, representing 20 regional and international business broker and M&A associations. Half of the respondents (50%) had at least 10 years of experience in the M&A industry and participating advisors reported closing 214 transactions in Q3 2015.
  • Restaurants, retail and personal service businesses led market activity in Q3 2015 for businesses valued under $500,000.
  • The top three industries for business sold in the $5MM to $50MM range were manufacturing, business service and information technology.
  • Retirement continues to dominate sellers' motivations for business owners who sold a business.
  • Larger transactions take longer to close and the period of time to close continues to increase as buyers become more sophisticated. Transactions over $1MM in value take an average of 8 months to close which is up from 7 months in Q3 2014.
  • Only businesses valued between $500,000 and $1MM closed faster in Q3 2015 (6 months) compared to Q3 2014 (7 months).

Tomball Showboat Drive In
Left to right: Andrew & Juanita Thomas (Buyers), Christina & John Rumfolo (Sellers), Ron Consolino (CBB Broker)


The Tomball Showboat Drive-In Theatre has been acquired by Andrew & Juanita Thomas from the Sellers, John & Christina Rumfolo, who built and started the business 10 years ago. John's father and two sons will continue helping manage the theatre located at FM2920 near Tomball. This family-owned and operated business has no direct competition and attracts movie goers from the broader Houston Metro area.  Each of the two screens holds 400 cars and broadcasts sound over an FM frequency to car radios.  Two family-feature films are shown on each screen five nights a week in the summer and three nights the remainder of the year.  The buyers built, started, and currently operate Wellborne Cinema Four in Alvin, Texas. 


Read more about the Showboat Drive-In History on their website here: Showboat History


This business was sold within 2-1/2 months of going to market. Some seller financing was part of the deal.


Ron Consolino listed and sold the business.


Beginners 2 Swimmers
Left to Right: Marcia Bowron (CBB Broker), Jennifer Price (Seller), Sara Downey (Buyer)
The buyer, Sara Downey, was actually a client of the Seller but didn't realize it until she found out the name of the business after signing a Non-Disclosure Agreement and Buyer Profile Form.
Ms. Downey owns a home-based tutoring company and made this strategic acquisition to add depth and breadth to her existing business. The client bases of both companies are synergistic, where two services can now be provided to them instead of one.
The business sold within three months of going to market.
Marcia Bowron listed and sold it.
Ask the Experts 
Question Ask The Experts 

Question:  What are some top reasons why a business for sale doesn't get sold.

There are many reasons why businesses on the market don't actually get sold. But here are two that are very common:
  • Value Expectations: Business Owners that have above-market value expectations narrow the pool of buyers that may otherwise be interested. Be sure that your asking price is based on reality....
    ...a reality that buyers and their lenders can believe in. The buyer will look at return on investment and their lenders will require that the deal make sense in terms of debt repayment. Over-priced businesses do not get sold.
  • Quality of Financial Data: 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. Unreliable data makes future income impossible to measure.  Buyers don't want to invest in something they can't quantify.
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.



The 20 Richest Cities in America - Houston #9, Dallas #11 

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