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From the category archives: Certified Business Brokers News

The business climate and economy in Houston, Texas is booming. When you find the right business in the right place... magical things can happen.

Houston Small Business Acquisitions Outpace Nation

More small businesses in Houston were sold in 2009 than in any other city in the U.S. Why? Because buyers are positioning themselves for the future. We have been bragging about Houston's economy and the engine behind it for a long time. Pick your industry, we've touted it. Houston Business Journal last week reported, "Houston-area small business sales outpace nation," which is the message we've been delivering and the trend we've been experiencing for years. Here's the HBJ article: Small business owners in the Houston area who wanted to sell their companies in 2009 were more successful in finding buyers than entrepreneurs elsewhere in the United States. Local owners also got more money for their businesses than sellers nationwide, according to statistics from BizBuySell.com, a large online marketplace for selling businesses. A total of 107 companies in the Houston area were reported sold by business brokers in 2009, down by 7 percent from 115 sales reported to BizBuySell in 2008. In comparis ...

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Why You Should Consider Selling Your Business in 2010

The 2010 new year brings with it the time when business owners review their strategic plan and business goals. Many of the owners we talk to are wondering if this is the year to consider selling the business. In Texas, there are five specific reasons why it would make sense to sell in 2010. There are many factors that determine best timing for selling a small business -- the financial condition of the company, valuation, growth cycle, profit history, and the current market. Usually the best time to obtain the highest price occurs when sales and earnings are good and trending upward with a history of good performance. This gives buyers confidence in projected future earnings. Value is dynamic and proper timing makes a big difference in the prices paid for business acquisitions. External factors such as the economy, industry trends, stock market volatility, competition, investor confidence, interest rates, and geopolitical considerations are cycles of constant change that impact value. Internal condi ...

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Houston Ranks #4 Best Place to Start a Business

Houston has received several noteworthy accolades this month. Houston may have a bad reputation for hot, humid weather and nasty traffic, but according to Fortune Small Business magazine, it’s a pretty good place to start a company. Fortune ranked Houston the fourth best place among large metropolitan areas in the U.S. to launch a business. In addition to jobs, the city’s ability to weather the recession was noted as a reason for the pick. Houston also ranks near the top in city income growth, as No. 5 in the nation. Houston’s success with job growth over the past 25 years has placed the city among the top markets in the country for elevated income levels, according to a new research study. Bizjournals, an affiliate of the Houston Business Journal, combed through 25 years of federal income data to find the nation’s 100 biggest metropolitan areas, covering the span from 1983 through 2008. The study focused on per capita income, a key indicator of earning power and econo ...

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Texas Restaurant Industry - Biggest in the Nation in 2009

Texas has long been the hot bed of restaurant activity in the U.S. With roughly $35 billion in sales expected in 2009, the restaurant industry in Texas is anticipated to be the leader in the restaurant sector in growth, according to the National Restaurant Organization, as reported in the Wall Street Journal. The $35 billion figure represents a 4 percent increase in sales year-over-year. That's down from 5.6 percent growth in 2008, but still shows that Texas restaurants are bucking the recession. The national sales growth rate is expected to be almost half the growth of Texas at 2.5 percent. In December 2007 California was #1 in restaurant sales, with Texas in the #2 position. We all know where California stands this day. Texas has outpaced the has-been leader and is kicking butt. “Even in these tough economic times, it is clear that the Texas restaurant industry is the best place to do business in the nation,” said Richie Jackson, executive vice president and chief executive of the ...

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Selling a Business in a Down Economy

With negative economic news grabbing the headlines, business owners are inclined to believe that it is not a good time to sell their company and that they will have to put their retirement plans on hold. While this rationale makes sense for some, waiting for better economic times does not necessarily equate to a higher value when the business is sold. The reality is, in many instances, the business value declines during this delay because the owner is not as energetic and gung ho as in previous years and the business starts retiring before the owner does. This usually results in less revenues and a lower bottom line. Consequently, the business owner can lose several years of retirement yet not add any additional value to their net worth. The sale of a profitable company in this environment is a viable strategy for business owners who are ready to sell. Value is dynamic and proper timing makes a big difference in the prices paid for business acquisitions. Quality sells in any economic environment and p ...

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CBB Deal Closed -- Front Page Feature of Houston Business Journal

Dragging economy revs up auto shops ---------------------------------------------------------------------------------- Certified Business Brokers, Houston, closed the deal between Buyer, Tariq Aziz, and Seller, Wayne Ray, of Mr. Transmission, on February 27, 2009. ---------------------------------------------------------------------------------- Published February 27, 2009 -- Houston Business Journal - by Allison Wollam Tariq Aziz owned a health care software services company for 14 years. He considered the current economy, decided to change careers, and has purchased a Mr. Transmission/Milex Complete Auto Care shop. “When I look at the economy, I’m thinking that people are choosing to maintain and repair theirs cars in case, God forbid, they lose their jobs,” says Aziz. “People are willing to spend a couple-hundred dollars to maintain their cars in order to get back and forth to work. It’s a scary time right now.” A lot of concerned consumers are giving mo ...

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Texas No. 1 Economy In The Nation, Houston Leads The Way

Texas is the state most likely to keep the economic engine running. The Financial Times recently named Texas the No. 1 state economy in the nation in a study measuring the impact of the current financial downturn on the 50 U.S. states. Thanks to high rankings in four separate economic indicators: employment growth rate, state product growth rate (GSP), personal income growth rate and home foreclosure rate, Texas is the state best-suited to weather the current financial turmoil. While most state and local governments are faltering because property taxes and sales revenues have dropped significantly, the situation in Texas is more robust. According to the Comptroller of Public Accounts, Texas sales tax receipts for December 2008 were up 2 percent from the same month last year. As for property values, while Houston has not been completely immune to the decline, homes have not experienced the overly-high appreciation rate of other markets, and with outstanding job and population growth, Houston is not ex ...

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Sooner Than Expected - A Buyer's Market for Buying Businesses

While the economy is expected to remain weak throughout 2009, there will continue to be plenty of opportunities for individuals and businesses in a position to buy, according to a recently released survey. The report, published by the International Business Brokers Association, found that 61 percent of the survey participants, professionals involved in selling businesses, believe that more businesses will go up for sale in 2009, while 66 percent say they will sell more businesses this year compared to 2008. This is no surprise. In April 2008, just nine months ago, Inc Magazine published "The Most Valuable Businesses in America" issue, which spelled out the Seller's market that has historically existed but would change as baby boomers started retiring. So, we have, indeed, been anticipating the change of the business-for-sale marketplace. But it was predicted to occur steadily over the next decade. Economic turbulence has accelerated the natural process. “While the economy has put a damper on ...

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Houston Leads the Nation in Employment....Still

Houston registered the nation's biggest gain is private-sector employment, according to the U.S. Bureau of Labor Statistics released today. As a matter of fact, Houston has been the pace setter for employment for the last couple of years. The Houston area added 42,400 private-sector jobs between November 2007 and November 2008, almost three times the gain of any other U.S. market, except for Dallas, the #2 market, with a gain of 35,100 jobs. No other U.S. market gained more than 15,600 private-sector jobs during the 12-month period. Just one-fifth of the nation’s 100 largest metropolitan areas, in fact, managed to add any jobs at all. Seventy-eight suffered losses, 21 posted increases, and one was unchanged. Four other markets lost more than 50,000 private-sector jobs during the past year: Atlanta, Los Angeles, Miami-Fort Lauderdale and Phoenix. The following are the 100 biggest labor markets in America, ranked according to raw change in private-sector employment between November 2007 and No ...

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Buying or Selling a Business During Tough Times

With negative economic news grabbing the headlines in the United States, business owners may think it is not a good time to sell their company. But fortunately for owners looking to sell, that is not necessarily true. Business sales are still taking place with sellers capturing attractive prices and favorable terms, when the deal is structured properly. One of the the most important foundations of constructing a successful deal has always been a solid buyer, one that is creditworthy. Whether it is an individual, another company, or a Private Equity Group, qualifying criteria are demonstrated business acumen, significant assets to pledge as collateral, or a committed fund behind them. With a proven, credible buyer at the negotiating table, lenders are more likely to support the transaction. In today's environment, some seller financing should be expected to get the deal done. It is not uncommon during a tight economy that sellers must share the risks with the buyer and the lender in order to achieve ...

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