North Dallas Company Sells Business in 4 Months via Business Broker

A Catastrophic Claims Services Company contacted DBG Advisors to help them sell their company. They were in the business of training and outsourcing Insurance claims personnel to catastrophic locations such as Tornado and Hurricane sites. These claims agents supported most insurance companies when a catastrophic event happened. They had over 100 claims agents trained and ready to deploy as needed in a crisis.

This company had been in business for many years and the owners were ready to retire and wanted to quickly exit the business. They had been looking for a M&A Advisor to represent them and DBG Advisors was able to help them reach their goal.

The company’s five-year average revenue was $11,830,000 with a five-year average Discretionary Earnings of $1,722,000. The company was also a C-Corporation and was in a position to have tax liability of about 50% of the sales price if they did an asset sale. DBG Advisors was able to find a buyer who would do a Stock sale to save the client at least $650,000 in taxes.

In addition, during the due diligence period the owners found discrepancies in their financial reporting that needed to be corrected. This put a lot of pressure on both parties, but DBG Advisors was able to work through this issue and provide a solution that gave both the seller and buyer confidence to proceed with the deal.

DBG Advisors listed this company in August and the closing for the transaction was in December of the same year. Usually, a $5,765,000 transaction takes much longer than four months but because the seller was motivated, and the buyer was positioned to act on the transaction DBG Advisors was able to close in record time.

Because DBG Advisors worked hard to manage relationships on both sides of the transaction and developed a good relationship with both attorneys the deal’s issues were handled quickly and the outcome was a Win/Win for the parties.

Insurance Claims Services Firm

  • Location: Richardson, TX
  • Goal: Sell company as quickly as possible for a fair price
  • Business Broker: Nolan Duck
  • Revenue & Sale Price: $11.8 million revenue business and sale price was $5,766,457
  • Timeline: 4 months

Results of Selling the Business

  • Gathered and worked to correct financial documents quickly and accurately.
  • Negotiated a Stock sale to lower seller’s tax liability.
  • Resolved misunderstandings between the sellers and the buyers.
  • Was able to close the transaction in less than four months.
Insurance Claims Services Firm
Richardson, Texas


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