What a buyer wants to hear from you
- How long is left on your building lease?
- A buyer needs enough years and renewal options to pay off the purchase. A lease with two years left and no option is a hard conversation.
- Which customers are under contract, and for how long?
- Signed storage and handling agreements with rates and terms carry more weight than monthly work that could stop with a phone call.
- How much of the volume comes from one plant group?
- If one Juárez manufacturer or its supplier chain is a third of revenue, expect the price or terms to reflect it.
- Who runs the floor when you are out?
- They want a warehouse manager and leads who already handle scheduling, inventory counts and customer calls.
The building decides a lot
Buyers look at the space before the books. Dock doors, clear height, yard room for trailers and the drive time to the Ysleta and Bridge of the Americas crossings all shape what customers will pay.
If you lease, the lease is part of what you sell. A buyer wants a long term with renewal options and a landlord willing to consent to the assignment. Ask your landlord early, quietly.
If you own the building, you have choices. You can sell it with the company, keep it and become the buyer's landlord, or sell it separately. Many buyers of the operation cannot also buy the real estate, so plan for that.
Set the rent at a fair market rate before you list, because buyers price the company as if it pays market rent.
Contracts and customer mix
El Paso warehouses live off cross border trade. Many serve Juárez plants that need parts staged near the border, plus distributors and retailers shipping across the Southwest.
That is good business, but buyers worry when a few plant accounts carry the company. If the top three customers are more than about 15 to 20 percent of revenue, a buyer may lower the price or ask for part of it to depend on those accounts staying.
- Copies of every signed customer agreement
- Rate sheets and how often rates have gone up
- Revenue by customer for three years
- Any customer that has given notice or cut volume
Equipment, racking and systems
Forklifts, racking, dock equipment and trucks usually move with an asset sale. Have a list with ages, hours and service records.
Our guide on Texas sales tax on equipment in a business sale explains why a sale to one buyer at one time matters and why trucks are taxed differently.
Your warehouse management software is part of what customers rely on. Check whether the license can move to a buyer.
If you run a bonded warehouse or operate in a foreign trade zone, ask the attorney how that status carries through a change in ownership before you promise anything.
Business personal property tax follows whoever owns the equipment on January 1, so buyers and sellers usually split the year's bill. See the El Paso CAD guide.
What pushes the multiple
Steady contract revenue, a manager who runs the floor, clean inventory records and a good safety history all help. Owner dependent customer relationships, a short lease and one big account all hurt.
For how buyers turn cash flow into a price, read how buyers price a business.
Curious what your company could sell for? Ask for a valuation or call (915) 555-0193.