TSPS MAY 2025 FINAL - Flipbook - Page 25
MEMBER ARTICLE
business becomes.
3. Signed Contracts and Future Work
A pipeline of signed contracts, ongoing work, and repeat clients
shows buyers that the business will generate cash after the sale.
This is especially reassuring when those clients work with your
team—not just you.
4. Strong Client Relationships (Beyond the Owner)
If every client insists on speaking only with you, it creates a risk
for buyers. But if your clients trust your team and have ongoing
relationships with project managers or licensed staff, the transition
is smoother—and more valuable.
5. Clear Financials and Normalized Cash Flow
Buyers don’t just want to know how much you made last year—
they want to see proof. Clean tax returns and 昀椀nancials that remove
personal expenses (like your truck lease or overpaid relatives) help
tell a clear story of pro昀椀tability.
6. Compatible Software and Systems
Buyers love to see up-to-date tools. If your accounting, mapping,
and 昀椀eld software is current and matches what the buyer already
uses—or can easily adopt—it adds value.
WHY YOUR EMPLOYEE IS THE BEST BUYER
Your employee already knows the business, the clients, the culture,
and the work. They often have the trust of your team. The SBA al-
lows an employee to buy a business with little to no money
down, and you are paid at closing.
This is a win-win. You protect your legacy, your team keeps
their jobs, and your clients stay with a familiar, licensed face.
Plus, the buyer gets to continue a business they’ve helped build.
FINAL THOUGHT
Most business owners are surprised by how long it takes to sell
a business, not just in calendar days but also in the number
of hours. It’s a process that requires patience, planning, and
commitment.
Even after the sale, your involvement isn’t over. Most buyers will require you to sign an employment agreement, typically lasting one year, to help ensure a smooth transition. That
post-sale period is essential to transferring client relationships,
maintaining continuity, and supporting the licensed surveyor
who will carry your business forward.
The earlier you start planning, the more options and value
you’ll have when it’s time to exit.
John Allen is President of Allen Business Advisors (AllenBusinessAdvisors.com), a boutique M&A 昀椀rm that specializes in
selling architectural, engineering, and land surveying businesses nationwide.
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May 2025 THE TEXAS SURVEYOR
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