Buying a Business in Texas
Buying or selling a business is a complex task because there are many moving parts. The moving parts obviously include the buyer and seller, but can also include lenders, landlords, franchisors, attorneys, accountants, customers, suppliers, competitors, employees, and others. Many times, individual and corporate buyers need the services of an M&A Advisor or Business Broker to help them find a suitable target. Having an experienced and seasoned third party standing between the buyer and seller provides a cushion that can help a deal become successful. This is where we come in.
DBG Advisors is a great resource for those who are interested in finding the right business to acquire in Texas. We provide Buy-Side Representation services for entrepreneurs, corporations, or Private Equity Groups.
Acquisition SearchWe can be a resource for locating companies since we have access to a variety of networks of businesses for sale, prospective sellers, and other business brokers in Texas. Listing businesses for sale can be time consuming and therefore not all opportunities that a business broker is working on may be officially listed on the company’s website. Therefore, individuals interested in acquiring a business would be well served by establishing a relationship and registering as a buyer with our brokerage firm. Prior to engaging our services; a buyer should prepare a resume, a financial net worth statement, and have a clear understanding of investment criteria (industry, location, size, price range, earnings requirement).
FundingIn some cases, securing the money to purchase an existing company can be a demanding process for buyers. Some of the guiding factors for an acquisition target are size, type, quantity of assets, amount of required funding, personal credit scores, personal industry experience and business cash flow history. Our firm has a well-established network of trusted funding sources.. Prior to investing considerable time on any specific business opportunity, meeting with our team will allow for an open conversation. We want to fully understand a buyer’s financial situation before we discuss price, terms, and conditions of sale.
Due DiligenceWorking with a brokerage saves buyers considerable time as they search for a company to buy. Businesses that are overpriced, unprofitable, or dependent on questionable or illegal business practices will be eliminated quickly. In addition, DBG Advisors has experience in helping our clients with the due diligence process especially in the evaluation of the financial, and operational documents required to determine if it meets their investment criteria. Reviewing the financial statements with the buyer and advising them on the methodology used to value and price the business is another key role we perform.
Professional ReferralsIt is in the best interest of all parties to have experienced, trusted advisors involved in a transaction. DBG partners with professionals in the accounting, legal, tax and financial fields. Middle market business sales are a very specialized field and we can be your contact source for referrals with the proper attorneys, CPAs, tax advisors and financiers who have extensive experience and proven competency in middle market business transactions.
Buy-Side Professional Service FeesDBG Advisors consults with individual Buy-Side clients in purchasing companies on a path towards growth. We also work with corporate Buy-Side clients on mergers & acquisitions. Our fees are simple and reflect industry standards and the DFW market. When a Buy-Side Agreement is signed, DBG negotiates a retainer to cover the expenses of the search, however, the retainer is credited back to the buyer at closing. In addition, we also receive a Professional Success Fee of 5% of the total consideration paid for the company purchased. The Professional Success Fee is paid at closing.
Why Choose DBG Advisors When Buying a Business?
- Trust and Ethics: When buying a business, you want to be confident that the intermediary is committed to a strong set of ethics, so you know your interests are fully protected. We act as a fiduciary for buyers and are committed to honestly represent your best interest above our own.
- Communication: Buying a business requires an understanding of financial, legal and industry regulations. There is a lot of paperwork and our team can communicate in a way that is easy to understand.
- Network of Professionals:Buying a business often brings together accountants, attorneys, property management companies, landlords, escrow officers, appraisers, tax agents, lenders, franchisors and financial planners. DBG can play quarterback and introduce you to professionals needed for a transaction to be successful.
- Finance: Most sellers avoid self-financing deals, with a goal of carrying as little debt as possible. Our team can make introductions to institutions and professionals for qualified buyers.
Receive a Complimentary Book, Written by Dr. Nolan Duck
Dr Duck wrote this book for business owners in Texas who want to scale up and exit their businesses. It contains his experiences in selling companies over the past 15 years. Hopefully, it will help you prepare for your exit.
In this practical book, you’ll discover: