I need help with a commercial transaction (Texas agents please)

Asked by T.E. & Naima Sumner, Dallas, TX Sun Jun 8, 2008

A friend of mine has asked me to sell his business for him. An automotive shop in a very busy area of Dallas. He doesn't own the real estate, he rents. If anyone has experience with these type of transactions (real estate is not involved) I'd love to discuss and compensate for your time. I have only done 4 commercial transactions in the past 15 years and they all involved real estate... H. E. L. P!

BTW, I offered to my friend to refer him to a commercial broker, but he really wants me involved.

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Larry’s answer
Larry, Home Buyer, Grapevine, TX
Tue Aug 19, 2008
Hello I'm Larry Dillon bullseye@spindle.net 817-995-7000

I've been in the commercial real estate for over 22 years
Sold, leased, developed and managed commercial real estate and brokered many businesses under five million in revenue. Assist buyer in financing and managed the truncations throughout the closings.

I Sold numerous small businesses throughout Dallas Fort Worth and orchestrated a great number small company acquisition. Specializing service companies with annual revenue ranging from a (loss) in income to 3,000,000 per year.

Achieving an average of 23 transactions per year since 1987

Excellent communicator
0 votes
T.E. & Naima…, Agent, Dallas, TX
Mon Jun 9, 2008
Thank you guys, We already know how much it's worth and how much he wants to sell it for etc... an appraisal is not needed upfront. Yes there is a lease on the building and moving it to a new tenant is not an issue. Yes he has a CPA but he wouldn't be involved in the sale

The price we discussed already includes all equipment and inventory will change as of the day of closing because the business is still operating.

Bruce, that's a great suggestion for business brokers, thank you. It's not a franchise. I'll explore the business brokers route.

I have seen in the MLS some listings that are only selling the business and I just didn't know where to start on paperwork, such as a basic listing agreement etc...
1 vote
Bruce Lynn, Agent, Coppell, TX
Mon Jun 9, 2008
If there is no real estate involved I'd think a business broker might be a good place to start. There's plenty around, but I don't know how you tell the good ones from the bad ones. One I found is http://www.vrbigd.com/ another is http://www.dallasbusinessbrokers.com/ . If he has any kind of a franchise business I think the franchise sales reps are a good place to start as well. They often know what people are ready to expand or start a franchise. The CPA idea also sounds like a good start as well as a good general business attorney.
Web Reference:  http://www.teamlynn.com
1 vote
Lucy Puniwai, Agent, Haslet, TX
Mon Jun 9, 2008
A CPA is your best bet. Your friend may have one. The P& L statement is a good place to start. Amortization of professional equipment, office equipment and any other assets will tell you what these items are worth. Is he incorporated as an LLC? Is he selling the name of the business? Dissolving then corporation is seamless when done by a CPA. If he wants to sell the entire business including assets, he will need to determine what he needs to pay off by the sale of the business. His Article of Incorporation will tell you who his principles are. Have they invested money? Look for Certificates that are given to the principles. The main area of involvement for you will be determining how his busines was initally set up. I sold my business (it was trading foreign currencies) by selling off assets and closing the LLC with my CPA and the tax benefits were plenty. It won't be to difficult .... let me know if you need more input.
Good luck! Don't be concerned about repayment, just feel comfortable to send my FORT WORTH WEST referrals!
Take care,
Web Reference:  http://webuyitwesellit.com
1 vote
Terri Hayley, Other Pro, Dallas, TX
Sun Jun 15, 2008
Hi Naima,

I have a friend who's a business broker and she's AWESOME at what she does. Her name is Trista Perot and she's also a sorority sister. Let her know I referred you:

Trista C. Perot, C.B.I., B.C.B.
Certified Business Intermediary (CBI)
Board Certified Broker (BCB)
Member: International Business Brokers Association (IBBA) http://www.ibba.org
Member: Texas Association of Business Brokers (TABB) http://www.tabb.org

TPG Business Services
15851 N. Dallas Parkway, Suite 500
Addison, TX 75001

There are so many things to think about. Does he just want to leave straight out? Will he be willing to stay on as a consultant for a while? Besides the tangibles, what is the value of the intangibles such as "goodwill" he's achieved in the community? Is he a candidate for a bigger company acquisition? (like Pep Boys or the like) Trista also does M&A, btw.

Is this his only business? Or does he have others? I also have a good friend who helps high net worth individuals merge all their businesses together when they need an exit strategy or for their heirs, etc. He explains it way better than I do, obviously. I can refer you to him, too, if you'd like.

Best to you,
Terri Hayley
0 votes
Dallas Texas, Agent, Dallas, TN
Mon Jun 9, 2008
You need to get the business appraised in order to the business. Is there a lease on the building? How long has he had the business?

0 votes
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