Questions a buyer will put to you
- Who holds the license, and will they stay?
- Buyers want to know which licensed person the firm depends on and whether that person signs on through the handover or longer.
- How many importers make up most of your fees?
- They want a list of top accounts by revenue, how long each has been with you, and whether any one account is close to a fifth of the total.
- Do your clients sign service agreements?
- Written terms with rates and powers of attorney on file read better than handshake accounts that could follow a person out the door.
- Which ports and crossings do you file at most?
- They are checking that the team knows the Bridge of the Americas, Ysleta and Santa Teresa traffic your clients actually move through.
The license question comes first
A customs broker license belongs to a licensed person, not to the company. Your firm may operate under a license held by you, a partner or an employee. Buyers ask early who that is and what happens to the firm if that person leaves.
If you are the only licensed person and you plan to retire, the buyer needs a licensed person in place before closing, or a plan for you to stay on.
How a license and the firm's permits carry through an ownership change is a question for the attorney and the federal agency. Do not guess at it in a letter of intent.
Accounts that stay put
Most El Paso brokerages earn their fees from importers that move goods for Juárez plants, plus distributors, produce shippers and retailers.
Buyers like an account list where no single importer or plant group pays more than about 15 to 20 percent of fees.
They also look at how accounts were won. If clients came through you personally over thirty years of handshakes, the buyer will worry they walk when you do. If they came through a team that already handles the daily filing, that worry shrinks.
- Years each top client has been with you
- Signed powers of attorney and service terms on file
- Fee schedules that are written down, not remembered
- How much revenue comes from entries versus extra services like bonds or consulting
The team behind the filings
Buyers look hard at your entry writers and account managers. A bilingual staff that talks to plant purchasing people in Spanish and to U.S. importers in English is worth real money, because it is hard to rebuild.
Show who does what, how long they have been with you, and whether anyone besides you can handle a problem shipment at the bridge. A firm where the owner answers every urgent call sells for less than one where the team does.
Compliance history and systems
Expect a buyer to ask about penalties, audits and errors in past filings. Clean records and written procedures help. So does a filing system that a new owner can learn without you sitting next to them.
Your software contracts matter too. Find out now whether your entry software license can be assigned to a buyer or needs a new contract.
What sets the price
Most brokerages under a few million in value sell as asset sales priced on owner cash flow. Clean books, steady fee revenue and a team that runs without you push the multiple up. Read how buyers price a business for the math.
Trade volume swings with the plants, and buyers know it. Show three years of monthly fees so they can see the swings were normal and recovered. The usual path from first call to closing is laid out on our timeline page.
When staff move to the buyer, the unemployment tax account question comes up. Our guide on the TWC tax account after a sale covers what to ask.
Want to know what your brokerage might bring? Request a valuation or call (915) 555-0193.