Selling an owner-operated business in Houston.

The Houston business mix

Greater Houston spreads across Harris, Fort Bend, Montgomery and Brazoria counties, and its owner-operated businesses tend to follow the region's large industries:

• Industrial and plant services: maintenance, scaffolding, insulation, inspection, industrial cleaning, and electrical and instrumentation contractors working for the refineries and chemical plants along the Houston Ship Channel, in Pasadena and Baytown, and down the Gulf Coast.
• Energy services and suppliers: equipment rental, machining, valve and pipe distribution, field services and engineering firms tied to upstream and midstream activity.
• Port, logistics and distribution: trucking, drayage, warehousing, freight forwarding and customs-related services around Port Houston and the distribution parks on the east and north sides.
• Healthcare: practices, imaging, home health, therapy and medical services, many connected to the Texas Medical Center and the suburban hospital systems.
• Construction and home services: HVAC, roofing, plumbing, foundation repair, restoration and remodeling across suburbs from Katy and Sugar Land to The Woodlands and Pearland.
• Restaurants and consumer businesses serving one of the most diverse populations in the country.

Who buys Houston businesses

Strategic acquirers

Larger industrial service and energy companies buying approved-vendor status, certified crews, equipment and customer relationships that would take them years to build. In plant services, being an approved contractor at a facility is often the main asset.

Private-equity add-ons

Platforms in industrial services, distribution, healthcare and home services adding Gulf Coast coverage. They look closely at safety records and at how much revenue comes from each facility.

Individual operators using SBA 7(a) financing

Engineers, operations managers and energy-industry professionals who want to own a business they understand, financing with an SBA 7(a) loan of up to USD 5 million. The lender will want to see how the business came through the last downturn, not just the last good year.

Search funds and ETA buyers

Searchers, many from Houston's business schools, looking for recurring service revenue that does not move with the price of oil.

What Houston sellers typically get wrong

• Pricing on the peak year. Energy-linked businesses swing with activity. Buyers and lenders will look at a full cycle, so present at least three to five years and explain what drove each one.
• One plant, one operator. A contractor whose work comes mainly from one facility needs to show the master service agreement, how long it has run and how work orders are awarded. Expect a buyer to price that concentration.
• Safety and compliance records out of order. Plant owners prequalify contractors on safety performance, and buyers check the same records. Keep injury logs, safety statistics, insurance experience and training records current and in the file.
• Storm and flood exposure left vague. Put insurance costs, claims history and any storm-related closures in the file. A buyer will find them anyway, and an explanation reads better than a surprise.
• The lease and the property. Many industrial and service businesses lease or own yards and shops. Where the sale involves real property or the negotiation of a lease, that part is handled by a real estate professional who holds the right Texas license, working alongside us.

How we value a Houston business

We build seller's discretionary earnings from tax returns, bank statements and payroll over a full cycle, so a strong activity year is not mistaken for the new normal. A multiple that reflects size, customer concentration, contract mix and owner dependence gives the first view. The debt-service test asks whether a buyer using SBA 7(a) financing could carry the loan from cash flow in an average year, not the best one. For equipment-heavy contractors the asset floor often matters more than elsewhere: trucks, rental fleet, tooling, inventory and receivables all count. You get a range with every assumption shown.

How the process runs

1. Conversation. A confidential discussion of the business and your timing. No cost, no obligation.
2. Valuation and readiness. A written range from your tax returns, bank statements and payroll, with a list of what to fix before buyers look.
3. Buyer search and qualification. An anonymized profile goes to qualified buyers only, after an NDA and proof of funds or lender pre-qualification.
4. Negotiation and closing. Letter of intent, diligence and closing, run alongside your attorney and CPA.

Every engagement is agreed in writing and signed before any work begins. The first conversation is confidential and carries no cost or obligation. See the United States overview, or our pages on Dallas-Fort Worth, San Antonio and Austin.