Acquisition Criteria
Our Philosophy
There are hundreds, if not thousands, of good solid businesses each year that get overlooked by buyers. Our efforts are centered on finding and acquiring some of these solid money-making businesses.
Our goal is to acquire companies and keep them operating as valuable members of their community and as essential components of the strong core of
If you are thinking about selling or in establishing an exit-strategy and your company meets what we are looking for; we would like to talk with you about your business. Important Note: In areas of special interest and circumstances, we may look at and give consideration to business with less than $1 Million in revenues and less than $200,000 in net income that can be part of a consolidation of smaller acquisitions.
We are not interested in the following business types:
What we are looking for:
Established service, manufacturing, and technology businesses, located in the Houston/Greater
We focus more on the “deal”, sustainable competitive advantage, and the management team, rather than a specific industry sector, although we prefer certain sectors over others.
We are interested in working with flexible business owners with leveraging deals that are created using cash deferral tools such as installment notes, earn-outs, and royalties and agreements with the seller such as non-compete and consulting or employment agreements. Options that address owners concern over security over financing will also be considered.
Business Type
We are interested in technology, service businesses, and low to medium-technology manufacturers of industrial, commercial or consumer products with sales ranges of $1 Million to $30 Million and a net income minimum of $200,000 (see Important Note to the right). Acquisition candidates must have stable earnings and cash flow for the past 3 years and growth potential, either through internal expansion of sales and product/service lines or by acquisition of other companies that are synergistic.
Transaction Types
We will consider a total acquisition of assets or stock. We are unusually flexible in structuring the components of a purchase price to meet the tax, estate and other needs of the seller. We are also willing to discuss the seller retaining some level of equity in the business should that be of interest to them.
Management
We prefer a management team which will remain in place for a minimum of three years from closing. This may be either existing owners or managers. We are also willing to recruit a new general manager in response to the owners’ needs for early exit (after a reasonable transition period) but a core experienced management infrastructure to handle daily operations must be in place that will remain with the business.
Serious Sellers
We are very committed buyers. We prefer to negotiate with responsive business owners who are serious about selling their company and have realistic expectations. We also prefer to work with business owners that can promptly provide us with requested information. We, in turn, commit to providing sellers with an open dialog about our process of evaluating their company, and flexibility in creating a deal that meets the needs of both parties.
WeBuyBiz.com
info@webuybiz.com