ServicesMergers and Acquisitions
Mergers and Acquisitions in Hutto, TX
When a competitor makes an offer, or you want to grow by buying another company, the deal is only as sound as the reasoning behind it. We work out where the value in each business really sits, then structure a merger or acquisition around that.
What a merger or acquisition means for a private company
For most business owners we work with, mergers and acquisitions is not a boardroom affair. It is selling to a larger firm in the same field, buying a smaller competitor to add customers and staff, or folding two owner-run companies into one. The stakes are personal: your people, your name and years of work.
Before we contact a single buyer or target, we look closely at why the combination makes sense. Is the value in recurring contracts, a trained crew, a territory, equipment or the owner's relationships? Each answer points to a different kind of partner and a different deal structure. Getting that right at the start is what keeps a deal from unraveling in diligence.
This work suits companies that have outgrown a simple listing, or owners who already have a strategic party in mind. If a straightforward sale is a better fit, we will say so and point you to our Sell a Business service instead.
What our M&A work covers
Strategic fit analysis
We lay out what each party gets: customers, capacity, staff-held licenses, supplier terms or territory. A buyer who needs what you have pays for it; a buyer who does not will push to lower the price.
Normalized earnings and valuation
We strip owner pay, one-time costs and personal expenses out of the books so the real earning power shows. Every later conversation builds on that number.
Confidential outreach
Possible buyers or targets sign a nondisclosure agreement before your company is named. Staff, customers and competitors learn nothing until you choose to tell them.
Deal structure
Asset or stock sale, cash at closing, seller financing, an earnout or a partial equity rollover. We show how each option moves risk and after-tax proceeds, and we model them next to each other.
Diligence and closing coordination
We keep document requests organized and the schedule on track, working with your attorney and CPA, who give the legal and tax advice, all the way to signing.
Signs it is time to talk about a merger or acquisition
A competitor has approached you
An offer nobody asked for may be fair or may be a lowball. A clear valuation is how you tell the difference.
Growth has hit a ceiling
Demand outruns your staff, or your staff outruns your systems. Joining a bigger operation, or buying one, can fix what hiring cannot.
You want to buy rather than build
Buying an established company in a nearby market like Round Rock or Georgetown can be quicker than starting a new location from scratch.
Too much rides on a few customers
Buyers worry when a few customers carry the business. Merging with a firm that has a wider base can steady both companies.
You want to step back but keep your team intact
A strategic buyer that needs your people is often the surest way to keep their jobs safe while you plan your exit.
How a deal moves from first call to closing
- 1
A private first conversation
By phone, video or at our office, we discuss your company, what you want and any offers you already have. What you say stays between us.
- 2
Diagnosis of value and fit
We go through three years of financials, contracts and operations to see what really creates value. Then we tell you straight which partners fit and which do not.
- 3
Preparation and outreach
We write a confidential memorandum and reach out to a short list of qualified parties under NDA. A good fit matters more to us than a long list.
- 4
Negotiation and letter of intent
We weigh offers on structure as well as price and settle terms before the letter of intent is signed, while your leverage is at its peak.
- 5
Diligence and close
We run the flow of documents, handle buyer questions and work with your advisors so problems come up early and the closing date stays put.
What affects the cost of an M&A engagement
No two deals are alike, so we cover our fees on the first call, plainly and in writing. There is no retainer to sign, and you will never see a charge you were not told about. Sellers pay nothing to start a listing, and we earn our fee only after the seller is paid.
- Size and complexity
- A one-location company with tidy books needs less work than a group of several entities trading with each other.
- Condition of the financial records
- Orderly books make diligence shorter. If records have to be rebuilt, outreach starts later.
- Deal structure
- Earnouts, seller notes and equity rollovers take more modeling and negotiating than a straight cash closing.
- Real estate and other assets
- Property, specialized equipment and intellectual property in a deal each call for their own review. Deals with real estate are covered on our Business and Property Sales page.
Mergers and acquisitions questions
Something not covered here? (512) 220-3532
How is a merger or acquisition different from simply selling my business?
An ordinary sale searches a wide pool for the strongest qualified buyer. M&A work goes after parties with a particular strategic reason to join with you, and that reason often brings a better price or terms. It takes more preparation, and the deal structure tends to be more complex.
Will my employees or customers find out?
They will not hear it from us. Each party signs a nondisclosure agreement before your name is revealed, and we share details step by step as their interest gets serious. The timing and manner of telling your team is up to you.
Should I sell assets or stock?
That turns on taxes, liabilities, and contracts and licenses that might not carry over. Buyers tend to favor asset deals, while sellers tend to favor stock sales. We walk through the trade-offs, and your CPA and attorney confirm the right choice for you.
How long does a deal usually take?
Plenty run several months from preparation to closing, and complicated deals can run longer. Organized financial records and a well-chosen buyer do more than anything to shorten the schedule.
Can you help me buy a company rather than sell one?
Yes. We help find targets, assess their earnings and build the offer. Our Buy a Business and Acquisition Financing Guidance services cover the search and the funding in more depth.
What is an earnout, and should I accept one?
With an earnout, part of the price is paid after closing, depending on how the business does. It can close the distance between your asking price and what a buyer will pay at closing, but the risk moves to you. We help you test whether the targets are achievable and the terms can be measured.
Start with an honest read of your company
If you already hold an offer, or you are weighing a combination for next year, a clear valuation is the right first step. It is free and confidential, and asking costs you nothing.