Closed transaction · August 2011
City Cigars
MDR & Associates took City Cigars, a cigar retailer, through to closing in August 2011.
The transaction
- ClosedAugust 2011
- SectorBusiness & consumer services
- LocationDallas, Texas
- BuyerAn individual buyer
- Engagement to closing90 days
- Represented byMDR & Associates
The sale
How it ran
City Cigars was founded in 2001 and grew into one of the liveliest cigar lounges in Dallas.
We sold it in 2011, within 90 days of taking the engagement, to an owner who kept the same service and the same welcome.
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What buyers look at in a service business
Recurring and contracted revenue
The strongest single driver. Revenue under contract, on a schedule, or under a maintenance agreement is worth a multiple of the same revenue sold ad hoc.
Owner dependence
If customers buy because of you, the buyer is not buying a business. Reducing this is the highest-return work available before a sale.
Customer retention and length
Churn and average tenure tell a buyer what they are really acquiring. Have the numbers ready before they ask.
The full list, and who the buyers are: Selling a service business in Texas.
Your company
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- A value range and what is driving it
- An honest answer about whether now is the time to sell
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