ServicesMergers and Acquisitions
Mergers and Acquisitions in Liberty Hill
Combining two private companies takes more than agreeing on a price. We help business owners find the right counterparty, test the numbers, choose a deal structure that holds up in diligence and keep the process confidential from the first conversation to closing.
What M&A work looks like for a private company
For small and mid-sized firms, mergers and acquisitions usually means one of a few things: buying a competitor to add customers or capacity, selling to a larger strategic buyer, merging two owner-run companies under one roof, or selling part of the business while the owner stays on. Each one changes who controls the cash flow, the contracts and the people, so the structure matters as much as the headline number.
Most deals that fall apart do so in due diligence, when the buyer finds something the seller did not plan for: customer concentration, unrecorded liabilities, a lease that cannot be assigned or add-backs that do not survive scrutiny. We work through those issues before an offer is signed, not after. With companies across Liberty Hill, Leander and Georgetown growing fast, that preparation is what keeps a good deal from stalling.
What our M&A help includes
Target and buyer screening
We identify companies that fit your goals on size, margin, geography and customer base. Outreach stays confidential, with an NDA in place before any names or financials change hands.
Valuation and synergy analysis
We start from normalized seller's discretionary earnings or EBITDA, then separate the value the business has on its own from the savings or revenue a combination might create. Buyers should not pay the seller for synergies the buyer has to deliver.
Deal structure
We lay out the tradeoffs between an asset purchase and a stock purchase, and how cash at close, seller notes, earnouts and equity rollover shift risk between the parties. The right mix depends on taxes, liabilities and how long the owner wants to stay involved.
Letter of intent
We help draft and negotiate the LOI so price, working capital target, exclusivity period and key conditions are clear before either side spends money on attorneys and accountants.
Due diligence coordination
We organize the data room, track the buyer's request list and flag problems early, from tax filings and payroll records to customer contracts with change-of-control clauses.
Closing coordination
We keep your attorney, CPA and lender working from the same timeline so the purchase agreement, financing and transfer documents arrive at the closing table together.
Signs it is time to explore a merger or acquisition
- A competitor has approached you
- An unsolicited offer is a starting point, not a valuation. Before you answer, it helps to know what the business is worth and whether other buyers would pay more.
- Growth has hit a ceiling
- If adding the next customer means a new location, more equipment or another layer of management, buying a company that already has those pieces can be faster than building them.
- A rival owner is ready to retire
- Owners nearing retirement often prefer selling to someone they know in the trade. A planned acquisition lets you absorb their customers and staff on terms that work for both sides.
- You want a partial exit
- Selling a majority stake to a larger firm, with an equity rollover, can take money off the table while you keep a role and a share of future growth.
- Too much revenue rides on a few accounts
- Combining with a company that serves different customers spreads that risk and usually improves what the combined business is worth.
How an M&A engagement runs
- 1
Confidential consultation
We talk through your goals, timeline and the company on the other side, if there is one. You leave knowing whether a merger, an acquisition or a straight sale fits best.
- 2
Financial review and valuation
We review three years of tax returns and financial statements, recast the earnings and build a valuation range. This is where weak spots surface while there is still time to fix them.
- 3
Outreach and negotiation
We contact qualified counterparties under NDA, compare offers on structure as well as price and negotiate the letter of intent.
- 4
Diligence and closing
We manage document requests, keep both sides moving toward the closing date and work with your advisors on the purchase agreement and transition plan.
What affects the cost of an M&A deal
Listing your business with us costs nothing up front. There is no retainer to sign, and every fee is written into the agreement before you commit. Our fee comes out of the sale proceeds at closing, so we earn nothing unless the seller is paid. What a transaction costs overall still varies, mostly with the work the deal demands and the outside advisors it requires.
- Deal size and structure
- A simple asset purchase with cash at close takes less work than a stock sale with an earnout, seller note and equity rollover, each of which needs its own terms and documents.
- Condition of the financials
- Clean, reconciled books shorten diligence. Mixed personal expenses, cash-basis records or missing years add accounting time on both sides.
- Number of entities and owners
- Multiple LLCs, several shareholders or a holding company structure mean more consents, more signatures and more legal review.
- Real estate and leases
- If property transfers with the business or a landlord must approve an assignment, appraisals and lease negotiations add steps. Our business and property sales page covers that side in more detail.
Mergers and acquisitions questions
- What is the practical difference between a merger and an acquisition for a small company?
- In an acquisition, one company buys the assets or the stock of another and the seller's owner usually exits or stays on as an employee. In a merger, two owners combine their companies and both keep an ownership stake in the new entity. Mergers need extra work on governance: who makes decisions, how profits are split and what happens if one owner later wants out.
- Should the deal be an asset sale or a stock sale?
- Buyers usually prefer asset purchases because they can leave old liabilities behind and get a stepped-up tax basis. Sellers often prefer stock sales for simpler tax treatment and fewer contracts to reassign. We lay out the tradeoffs, and your CPA and attorney confirm the tax and legal effects for your situation.
- How do you keep the process confidential from employees and customers?
- Counterparties sign an NDA before they learn the company's name, and early materials are written without identifying details. Site visits and management meetings are scheduled after hours or framed carefully. Most owners tell key staff only once a signed LOI is in place.
- How long does an M&A transaction usually take?
- Most private company deals take several months from first outreach to closing, and diligence is often the longest stage. Well-organized financials and an early valuation shorten it considerably, which is why we encourage owners to start preparing before they need to sell.
- Can you help if I want to buy a company rather than sell one?
- Yes. We screen targets, review their numbers, help structure the offer and coordinate diligence. If you need a loan, our acquisition financing guidance page explains how SBA and conventional lenders look at a deal.
Plan the deal before the offer arrives
A short conversation now can show you what your company is worth, which structures make sense and what a buyer will ask to see. The consultation is free and stays confidential.