Closed transaction · December 2018

Cynthia's Manhattan Limousine

MDR & Associates took Cynthia's Manhattan Limousine, a limousine service, through to closing in December 2018.

Cynthia's Manhattan Limousine logo

The transaction

  • ClosedDecember 2018
  • SectorBusiness & consumer services
  • LocationAustin, Texas
  • BuyerFinancial buyer
  • Engagement to closing120 days
  • Represented byMDR & Associates
  • Todaycynthiaslimo.com

The company today, in its own words. A full-service transportation company with more than 20 years of experience, providing professional transportation throughout Austin and the surrounding areas, from airport transfers and corporate travel to weddings and special events.

The sale

How it ran

Cynthia's Manhattan Limousine, a limousine service in Austin, came to us 120 days before it closed in December 2018. It was sold to a financial buyer, found through the same confidential process every company we represent goes through: a blind profile, buyers qualified before they learn the name, and more than one at the table where the company draws them.

What that buyer examined is what any buyer of service businesses examines — the factors below, in that order.

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What decided the price

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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