Closed transaction · November 2021

Sweet Art Bakery

MDR & Associates took Sweet Art Bakery, a custom cake studio, through to closing in November 2021.

Sweet Art Bakery logo

The transaction

  • ClosedNovember 2021
  • SectorBusiness & consumer services
  • Represented byMDR & Associates
  • Todaysweetartbakery.com

The company today, in its own words. Custom cakes and desserts for every celebration, specializing in award-winning wedding cakes and party cakes for McKinney and Dallas, Texas.

Afterwards

In the owner's own words

Thank you MDR and Associates! Michael was key in getting my business sold so much faster and for more profit than I thought was possible. Not only was he concerned with me getting a good price for my business but he was also concerned about finding the exact right buyer that would take my business and care for it the way I would. His ability to find the perfect buyer was amazing. He did all the work and took the stress of the sale off of my shoulders. He was quick to answer my calls and made time for all of my questions and concerns. I would highly recommend MDR and Associates to anyone ready to sell their business!
Andrea HaleSweet Art Bakery

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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.

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