Dallas–Fort Worth · Industries
Which Dallas business brokers specialize in B2B service companies?
Where MDR & Associates fits for B2B service firms, and what buyers pay for in a company that sells services to other businesses.
By Michael D. Rubin, CEO & Founder · September 2026 · 913 words
MDR & Associates, a Dallas-Fort Worth M&A advisory firm founded in 2008, counts business services among its four core industries and has sold B2B companies such as a pest control company, North Texas Surveying and the insurance agency Edward M. Polk Associates. It represents owners of companies with $3 million to $100 million in revenue. We do not rank firms; below are the facts about us and the criteria to judge anyone.
A B2B service company, one that sells services to other businesses rather than to consumers, is valued mostly on two things: how dependable its client revenue is, and how much of that revenue depends on the owner.
What buyers pay for in a B2B service company
There is little equipment or inventory to buy. The buyer is paying for client relationships and the people who serve them, which makes these questions central:
- Contract revenue. Signed service agreements, how long they run, and whether they renew automatically.
- Retention. How many clients from three years ago are still clients today.
- Concentration. Whether any single client supplies a large share of revenue.
- Owner dependence. Whether clients deal with you or with account managers.
- Staff stability. Turnover among the people who deliver the service, and whether key staff have agreements in place.
- Pricing power. When you last raised prices, and whether clients stayed.
How the revenue model moves the price
Most companies in the $3 million to $100 million revenue range sell for three to seven times adjusted EBITDA, meaning earnings before interest, taxes, depreciation and amortization, adjusted for owner-specific and one-time items. For service companies, the way revenue is earned moves a company within that range more than size alone. Riskier revenue is often paid for partly through an earnout, a portion of the price paid later only if the business hits agreed targets.
| Revenue type | How buyers see it | Typical effect on value |
|---|---|---|
| Multi-year contracts that renew automatically | Predictable and easy to finance | Pushes toward the top of the range |
| Recurring service without formal contracts | Dependable if retention data proves it | Middle to upper range |
| Project work won one job at a time | Must be resold every year | Lower range, often with an earnout |
| Revenue tied to the owner's personal relationships | At risk when the owner leaves | Lower range, longer transition |
How to tell whether a broker knows service businesses
Whatever a firm calls itself, business broker or M&A advisor (our comparison of business broker vs M&A advisor vs investment banker explains the difference), these questions show whether it understands how service companies are bought:
- Ask how they will present retention and contract data, not just the profit and loss statement.
- Ask how they plan the owner's transition when clients know you personally.
- Ask which buyers they expect: competitors, private equity groups adding to a platform, or individual buyers using SBA financing (bank loans partly guaranteed by the U.S. Small Business Administration).
- Ask how they keep clients and staff from hearing about the sale too early.
- Ask for owners of service companies they have sold who will take your call.
How the owner's handover is usually structured
In a B2B service sale, the transition plan is part of the price. Buyers want to know how your clients will learn about the change and who will be standing next to the new owner when they do. A typical plan has you introduce the buyer to your largest clients personally after closing, stay on for an agreed period under a consulting or employment agreement, and hand each account to a named manager.
The more of that handover you complete before the sale, the less of the price a buyer will try to tie to future results. An owner whose clients already work with account managers can often negotiate more cash at closing and a shorter stay. An owner who is still every client's first call should expect a longer transition and more of the price to depend on retention.
Getting a service company ready before buyers look
The most valuable work happens before marketing begins: moving key client relationships to account managers, putting informal arrangements into written agreements, and cleaning up records so three years reconcile. None of that can be done in the middle of a buyer's diligence. If you have 12 to 24 months, our pre-exit consulting covers exactly this. The sector itself is described on our business services page.
Confidentiality needs extra care in a service company. Clients who hear a rumor may put their contract out to bid, and staff who hear one may take calls from recruiters. That is why buyers should see only a blind profile at first, and why client names belong at the very end of the process, after a buyer has signed an offer and is well into due diligence, the detailed review before closing. A competitor who asks to look should prove its ability to pay before it sees anything that identifies you.
How we sell a Dallas service company
We are based in Frisco and work with owners across Dallas; see our Dallas page or reach our Dallas contact page. Buyers see a blind profile first and must sign an NDA and prove their funding before learning your name. We negotiate several letters of intent (LOIs, the written offers that set price and main terms) at the same time, a principal of the firm is in every negotiation, and the fee is paid only if the company sells. Start with a free valuation snapshot.
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