Questions Socorro Owners Hear From Buyers
- Who are your biggest customers on the other side?
- Many valley companies sell to plants in Juárez. Buyers want each customer's share of sales and how long you have worked with them.
- Is the family going to keep working here?
- If relatives run the office or the yard, buyers ask who stays and on what pay. Tell them early.
- Can I see the payroll and the tax accounts?
- Buyers look at payroll records, workers comp and your state accounts to be sure nothing is past due.
- Why are you selling now?
- Have a plain answer. Retirement or a move is fine. Buyers worry when the reason sounds like trouble you have not shared.
Family companies in the Lower Valley
A lot of Socorro companies were started by one family and built over decades. Trucking outfits, small warehouses, auto and tire shops, farm and feed suppliers, and contractors who work up and down the valley.
Many of them have a son or a cousin who knows everything but does not want to buy. That is common. A sale to an outside buyer usually brings a higher price than a sale to family or staff, who often cannot raise the money for full value.
When your customers are across the river
Companies near the port often earn much of their money from Juárez plants and the freight that moves through the bridges. Buyers like that steady demand. They also look hard at how many plants you depend on.
If your top two or three customers make up more than about 15 to 20% of sales, expect a lower offer or a deal where part of the price depends on keeping them. Our page on selling a warehouse or 3PL covers how buyers weigh contracts.
A bilingual office team is worth mentioning. Buyers know it keeps customers on both sides happy.
Getting the books ready
Buyers start with three years of tax returns and profit and loss statements, then add back your own pay and personal costs to find what one owner takes home. Clean books make that fast. Mixed personal and business spending makes it slow.
Keep the company running at full speed while it is for sale. A drop in sales during the process scares buyers more than almost anything else.
Texas steps after a Socorro sale
Socorro is in Texas, so Texas agencies handle the closing paperwork. Texas has no personal income tax, so you owe no state income tax on your gain. Federal tax still applies, so plan with your CPA.
Your unemployment tax account with the Texas Workforce Commission does not simply pass to an unrelated buyer. Our guide to your TWC account after a sale explains what usually happens.
Equipment sold together to one buyer is often free of Texas sales tax, but vehicles are not. See sales tax on equipment in a sale and confirm with your CPA.
How long to plan for
Most sales close seven to nine months after you hire a broker. The timeline page lays out each stage, from the first valuation to the day the keys change hands.
Curious what your company could bring? Ask for a free valuation or call (915) 555-0193.