Closing The Deal

By Alicia L. Goodrow and Michelle Nickel

Working for months with or without an investment banker, you find the perfect match—THE buyer who will purchase assets or stock to expand your business. It’s exciting to plan how to spend the money already burning a hole in your pocket. Your current investors are also excited, and your loyal management team will be on-board when they learn about the bonuses and new equity packages they’ll receive. But before everyone orders their new toys and counts their change, you have to close the deal.

With historically high prices for oil and natural gas and super-heated demand for quality service and supply chain companies, Texas’ core private businesses are hot commodities for private equity and venture capital investors. Many private owners have patiently built solid businesses on a shoestring, leveraging their work ethic, business smarts, and reinvested capital into a collection of valuable Master Services Agreements with loyal, large customers. These quiet, mindtheir-manners, private companies have grown quickly in recent years and may have paid little attention to “back of the house” operations.

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