What is my business worth?

At the end of the day, your business is worth exactly as much as someone is willing to pay for it. Because of this subjective nature, there are many opinions and rules of thumb on how to value a business. You’ve maybe heard some of these such as “profit x 3” or “revenue x 1.” But behind that subjective nature is the business appraisal process which is a systematic approach that attempts to prove to buyers why the business is worth what is being asked for it. For example, if “profit x 3” is in fact a reasonable approach for your business, profit itself must be correctly defined. Smart buyers can use this to their advantage over unsuspecting sellers. Just like a doctor performs an MRI or bloodwork before surgery, so you must get a proper business appraisal before taking it to market. Click here to learn more about the benefits of a business appraisal.

What types of businesses do you sell?

I sell blue-collar businesses with revenue between $1M — $30M. This includes, but is not limited to, service and/or B2B companies such as HVAC, plumbing, electrical, manufacturing, supply, tractor dealerships, auto repair centers, and more. To summarize, I sell companies you would typically find in an industrial park, not on main street.

I work within a 2.5 hour radius of my location, College Station. This includes the whole Brazos Valley, Houston metro, Austin metro, south DFW, much of east Texas, Waco, and all areas in between.

Exceptions to these parameters are made in some cases.

My biggest competitor wants to buy my business. What do I do?

Get a proper business appraisal, show it to your competitor, and tell them to take it or leave it. This cuts through all the mess, all the noise, and all the tire-kicking.

You can hire me in this situation for a discounted rate to ensure proper confidentiality and fair negotiations on all deal subject matters outside of the price.

Should I sell my business to an industry buyer?

I’ll answer this question with another question: Would you want to sell your car to a mechanic? Most of the time, the answer is no. And that’s because the mechanic can pick apart every little thing wrong with the car. The same is true with businesses most of the time. Industry buyers create comfortability by knowing your business, but many times also instill fear because you know that they know your business’ faults. This often makes the seller feel exposed and like they have no other option than to sell to an industry buyer. But this just isn’t true. A lot of times the industry buyer will not pay as much as someone else who is excited to enter into the industry.

When is the right time to sell my business?

Timing markets and business cycles to maximize your exit is a smart move. But what’s even smarter is to sell the business when you want to sell it. When you’re ready to move on to the next thing is exactly when it’s the best time to sell. Whether its more time with the family in retirement or moving on to the next phase of your career, life is too short to not do what you want to do. But of course, the money has to make sense.

I can help you secure a business appraisal to see if the numbers will justify your career transition.

How long will it take to sell my business?

It generally takes 9-12 months from start to finish. However, there are many unforeseen factors that can change this time frame. I’ve seen it take three months, and I’ve seen it take five years.

Why do you only represent sellers and not buyers?

When I signed up to do this job, I did so to put money in business owners’ pockets, not take it out. I genuinely enjoy seeing sellers receive big checks for their years of hard work. Representing buyers would mean I’m trying to make that check as small as possible. Growing up in the family business and being an entrepreneur myself, that’s just something I’m not willing to do.