West & North Texas · Texas
Big Spring business brokers and M&A advisors
Owners in Big Spring who are thinking about a sale can talk to MDR & Associates, whose M&A advisors stay with a Texas seller from the first meeting until the money is wired. Big Spring sits where Interstate 20 crosses U.S. 87, 40 miles east of Midland, and its companies have long served the oil field, the ranches and the institutions that anchor Howard County.
Oil, an air base and the institutions that stayed
The town grew from the Texas and Pacific Railroad in the early 1880s and from ranching by settlers such as C.C. Slaughter. It takes its name from a single large spring below Scenic Mountain. Oil discovered in the 1920s marked the start of the Permian Basin oil industry, and oil remains a dominant part of the area's economy. From the 1940s until 1977, Webb Air Force Base was a major part of city life; its grounds are now the McMahon-Wrinkle Industrial Airpark.
Big Spring also has institutions that keep payrolls steady: a 200-bed state psychiatric hospital, opened in 1939 and still one of the largest employers, the George H. O'Brien, Jr. VA Medical Center serving veterans in 33 counties, a federal correctional institution and Howard College. The Delek refinery and the Panther Creek Wind Farm round out an economy of 26,144 people that is broader than many West Texas towns its size.
Big Spring at a glance
- CountyHoward County (county seat)
- Metro areaBig Spring micropolitan area, Permian Basin
- Companies we sell$3M–$100M
- Typical transaction3–9 months
- Fee if we do not closeNone
Pricing a company tied to the oil cycle
If your company does work for energy customers, whether fabrication, equipment, hauling, supply or field services, buyers will like the Permian Basin and still be careful about the cycle. They will ask how revenue moved over several years, how much came from the largest customers and what share of the work would continue if drilling slowed. A company that also sells to the refinery, the hospitals, ranches or public customers can show a steadier base, and that can lift the multiple.
We build that picture before a buyer asks for it. A formal business valuation and a recast of three years of financials show normal earnings rather than a peak year, and our experience with Texas manufacturing and fabrication companies helps us present equipment, capacity and backlog in terms buyers trust.
From Frisco to Howard County
Our advisors come to Big Spring owners at their office or at a discreet place of their choosing, and the first meeting is free. Our page on the West and North Texas region covers how we market companies across the Permian Basin and the Plains.
What we sell in and around Big Spring
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 Big Spring owners ask before they sell
Answered in full by the advisors who run the sales. Every Texas-wide answer.
The process
How a Big Spring 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 Big Spring
Questions owners in Big Spring ask
Will buyers discount my Big Spring company because oil prices swing?
They will look closely at how you performed through the swings. Several years of recast financials, a clear breakdown of customers by industry and proof that key staff will stay all reduce the discount. Buyers who know the Permian Basin often pay well for a company that held its margins in the slow years.
My company operates at the industrial airpark. How does a buyer treat the site?
Buyers price the facility along with the earnings. If you operate at the McMahon-Wrinkle Industrial Airpark, we document whether you own or lease, the lease terms, the buildings and the equipment, so a buyer can judge the site from facts instead of guessing, and so the property question does not stall due diligence.
Talk to an advisor about your Big Spring company
Four fields, a reply the same business day, and nothing shared with anyone. If you would rather talk, call (855) 637-2776.