Mergers and Acquisitions Advisory in Fort Worth, TX

When a Company Outgrows a Simple Listing

Once a company earns well into seven figures, the buyer pool changes. You start hearing from private equity firms, family offices and larger companies that buy competitors as a growth plan.

These buyers have done many deals. They bring attorneys, accountants and lenders who know every lever in a purchase agreement. Meeting them with a simple listing leaves too much to chance.

Mergers and acquisitions advisory is a more formal version of a business sale. The goal is the same, but the process is built to create competition among sophisticated buyers.

Strategic and Financial Buyers

Buyers at this level fall into two broad groups, and they think about price in different ways.

• Strategic buyers already operate in your industry. They may pay more because your customers, crews or locations fit what they already have.
• Financial buyers, such as private equity groups, buy for a return. They focus on steady EBITDA, a capable management team and room to grow.

Some private equity firms buy a first company in a region as a platform, then add smaller ones around it. Groups like these have been active in the trades, logistics and healthcare.

How a Structured Process Runs

1. Preparation. Your advisor recasts the financials around EBITDA and builds a detailed confidential information memorandum.
2. Buyer list. A targeted list of strategic and financial buyers, often reaching well beyond Texas.
3. Outreach. A short teaser goes out without your name. Interested parties sign an NDA before seeing the full package.
4. First round. Buyers submit early indications of value, which shows where the market is.
5. Management meetings. The strongest groups meet you and your leadership team.
6. Letters of intent. Final bidders submit LOIs on a set deadline, so offers arrive side by side.
7. Confirmatory diligence and closing. The chosen buyer completes due diligence and both sides finish the purchase agreement.

Running buyers on the same timeline is what puts you in a strong position. A buyer who knows others are bidding tends to sharpen both price and terms.

Quality of Earnings

Most institutional buyers hire an accounting firm to produce a quality of earnings report. It tests whether your EBITDA and add-backs hold up.

Surprises here are a common reason prices drop after an LOI is signed. Some sellers order their own report before going to market so they can fix issues on their own schedule.

Terms Beyond the Headline Price

Larger deals carry more moving parts. Your advisor helps you weigh each one, not just the top number.

• Working capital adjustment. A target for receivables, inventory and payables. Missing it can lower what you receive at closing.
• Earnouts. Part of the price paid later if the company hits agreed goals.
• Seller notes. A portion paid over time, with interest.
• Equity rollover. Some buyers ask you to keep a minority stake, giving you a second payday if the company is sold again.
• Escrows and indemnities. Money held back to cover claims that come up after closing.

Two offers with the same price can leave you with very different results once these are added up.

Fort Worth Companies That Fit

The region's economy produces many companies at this size, from suppliers to the aerospace and defense base to freight and warehouse operators near AllianceTexas.

Specialty contractors and manufacturers here often draw interest from both kinds of buyers.

If your company is smaller, our standard process to sell your business may be the better fit. A valuation will make that clear.

Getting Started

Find out how buyers are likely to see your company. Use the confidential valuation form or call (817) 555-0142 to talk with an advisor.