Dallas–Fort Worth · Texas
Allen business brokers and M&A advisors
MDR & Associates is a Collin County neighbor for Allen owners: a Metroplex-based firm of business brokers and M&A advisors that sells profitable companies on the owner's behalf. Allen is a city of 104,627 on U.S. 75, about twenty miles north of downtown Dallas, where education, insurance, financial technology and telecommunications are the largest sectors. Our corporate office is in Frisco, and we meet Allen owners wherever they prefer.
From a Houston and Texas Central stop to a fintech suburb
Allen was established by the Houston and Texas Central Railway and named in 1872. The railroad let farmers ship crops across the country before they spoiled, which shifted the area away from cattle toward crop farming. The town incorporated in 1953, and growth accelerated with the construction of U.S. 75, the opening of Dallas/Fort Worth International Airport and the expansion of nearby Dallas and Plano.
Today U.S. 75 cuts through the middle of the city, State Highway 121 forms its western edge and the Sam Rayburn Tollway crosses the border with McKinney. The largest employers include Allen ISD, the City of Allen, Experian Information Solutions and Jack Henry & Associates. Companies headquartered here include WatchGuard Video, PFSweb, Cytracom, PINSTACK, Boss Fight Entertainment and Credit Union of Texas, and shoppers come for Allen Premium Outlets, Watters Creek and The Village at Allen.
Allen at a glance
- CountyCollin County
- Metro areaDallas–Fort Worth
- Companies we sell$3M–$100M
- Typical transaction3–9 months
- Fee if we do not closeNone
Who buys a company in Allen, and what they pay for
Buyers for an Allen company come from several directions. Individual buyers want a well-run business to own and operate in North Texas. Capital groups and private equity groups look for platforms, companies they can build on by adding others. Strategic buyers, often larger firms in the same field, look for customers, people or capabilities they do not have. We reach all of them through our own database first and bring them into competition.
What they pay for is predictable earnings. If your company sells services under contract, such as IT support, managed services, billing, compliance or staffing for the insurance, financial technology and telecommunications employers around Allen, recurring revenue with low customer churn is one of the strongest value drivers, and our business services practice knows how to document it.
Home-service and trade companies that serve Allen's many households, such as HVAC, plumbing, landscaping and garage door firms, draw a different set of buyers who look at service agreements, crews and truck counts. The firm has sold companies of that kind in Texas, including Apple Garage Doors and Alliance Mechanical Services.
Retailers and restaurants near the outlets and Watters Creek sell on a third set of measures: sales per location, lease terms and how well each site runs under a manager rather than the owner.
Allen's road network matters in one practical way. With U.S. 75, State Highway 121 and the Sam Rayburn Tollway all within reach, many companies here serve customers in several cities at once. We map revenue by city and by customer so a buyer can see that no single area or account carries the business.
How we sell an Allen company, start to finish
Everything starts with a free, confidential discovery meeting and an opinion of value once we have reviewed three years of financials. If we agree to work together, you sign an engagement letter and we prepare a marketing package, a financial recast and a professionally produced HD video. From there our ten-step process takes you through buyer screening, meetings, several letters of intent, due diligence, legal documents and closing, usually in three to nine months.
Because we are based in the Metroplex, meeting in Allen at your office or somewhere discreet is simple. A principal of the firm takes part in every negotiation, and our VP of Client Engagement keeps you informed week by week while buyers review the company. Before anything goes to market, we also ask what you want after closing: a clean exit, a period of consulting, or staying on to run the company under new ownership. Different buyers suit different answers, and knowing yours early saves months. Owners who want to compare notes can read how we work in Dallas and across the Dallas–Fort Worth region.
What we sell in and around Allen
Industry decides the buyer, the multiple and the diligence. These are the four sectors we work in most.
Manufacturing
Equipment, real estate, backlog and customer concentration decide what a manufacturer is worth.
How buyers value itHome Services
Plumbing, HVAC, roofing, landscaping and other home service companies — where repeat customers, crews and technicians decide the price.
How buyers value itDistribution & Wholesale
Inventory, working capital and supplier agreements decide what a distributor is worth.
How buyers value itBusiness Services
Recurring revenue and owner dependence separate a two-times business from a six-times business.
How buyers value itStraight answers
Questions Allen owners ask before they sell
Answered in full by the advisors who run the sales. Every Dallas–Fort Worth answer.
The process
How an Allen sale runs
Ten steps in four stages, typically three to nine months. Click any step to see it in full.
- Prepare
- Go to market
- Negotiate
- Close
We also work with owners near Allen
Questions owners in Allen ask
My Allen company sells software-enabled services on contract. How will buyers value it?
Buyers focus on how much revenue repeats each year, how long clients stay and how easily contracts transfer to a new owner. Strong retention and multi-year agreements push value up. Businesses with $3 million to $100 million in revenue most often sell for three to seven times adjusted EBITDA.
Will a larger company in the same field pay more than a private equity group?
Sometimes, because a strategic buyer may save costs or gain customers by combining with you. Sometimes a private equity group pays more to use your company as a platform. The only way to know is to invite both, which is why we negotiate several letters of intent together.
How do I keep employees at my Allen company from learning about a sale?
Buyers only see an unnamed profile until they sign a confidentiality agreement and prove they can fund the purchase. Meetings happen after hours or away from your office. Most owners tell key employees near the end, often with a plan for how they fit under the new owner.
Talk to an advisor about your Allen company
Four fields, a reply the same business day, and nothing shared with anyone. If you would rather talk, call (855) 637-2776.