Start With the Number a Stranger Would Pay
Owners decide to sell for different reasons. One is ready to retire, another has a partner heading out the door, and a third just got an unsolicited offer nobody could judge.
All of them need the same first fact: what a buyer with cash and no history with your company would pay. Price it too high and the listing sits. Price it too low and the buyer keeps the difference.
A broker who sells companies across Bexar County and the Hill Country can show you a realistic range and explain what moves it up or down.
Profit Sets the Price, Not Sales
Buyers pay for earnings they can prove. A company with seven million dollars in sales can still sell for around two million when margins are thin.
When the owner works in the business, brokers use seller discretionary earnings, which is what one working owner could take home. Larger firms with managers in place are priced on EBITDA.
Most Main Street companies change hands at roughly two to three times that cash flow. Where yours lands depends on risk, such as how much rests on you and how much revenue sits with a few customers.
Our owner question on how buyers read your books shows how the math works.
A Metro Shaped by Service, Soldiers and Storms
San Antonio is a military city, a medical city and a tourist city, with fast growing suburbs to the north and along the I-35 corridor. Roofers, air conditioning crews, restaurants and government contractors all do steady business here.
Each type draws a different buyer. Our value by business type pages explain what each buyer checks first.
What Buyers Ask First
Serious buyers screen a company quickly. They ask how much profit one working owner takes home, how many customers share the revenue, how long the lease runs and how many staff would stay.
They also want three to five years of financials and a clear story for why you are selling. Personal reasons like retirement, health or a new chapter are easy to believe. Business trouble raises red flags.
Getting those answers ready before you speak with a buyer makes your company look organized and keeps negotiations on your terms.
Why Owners Use a Broker
A broker brings buyers you could not reach and keeps your name private until a buyer is qualified. A broker also stands between you and a professional acquirer who knows the numbers better than most first time sellers.
Most listings that close take seven to nine months. A good broker tells you that up front and keeps the process moving.
Signs You May Be Ready to Talk
- Profit has held steady for three years or more.
- Your crew or managers can run a week without you.
- No single customer is more than a fifth of your revenue.
- You want a plan, whether you sell this year or in five.
If two or three of these fit, a short call will tell you where you stand. Companies with about one million dollars in yearly sales or more get the most attention from buyers.
What Happens to Your Information
Your answers go to one brokerage partner, and nothing about your company reaches a buyer without your approval. We explain our role on the page about how we are compensated.