Closed transaction · January 2013
Up In Smoke
MDR & Associates took Up In Smoke, a cigar retailer, through to closing in January 2013.
The transaction
- ClosedJanuary 2013
- SectorBusiness & consumer services
- LocationDallas, Texas
- BuyerPrivate investor
- Engagement to closing120 days
- Represented byMDR & Associates
The sale
How it ran
Jay and Wendy Fox started Up In Smoke in 1978 and built it into one of the largest cigar retailers in Texas, with five lounges across Dallas–Fort Worth.
We sold the business in January 2013 to an investor who has since carried it on.
Own a service business?
Find out what a buyer would pay for it today. A confidential opinion of value from the firm that sold Up In Smoke — free, with no obligation, answered the same business day.
Get a free valuation snapshotWhat 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
Talk to the firm that sold Up In Smoke
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- A value range and what is driving it
- An honest answer about whether now is the time to sell
- No fee unless and until your company sells