Businesses in Texas For Sale

Navigating the market for buying or selling a business in Texas can be complex and full of questions. We've compiled a list of frequently asked questions to help guide you through the process with clarity and confidence, whether you're a potential business buyer, existing business owner, or an up-and-coming entrepreneur.

Market Snapshot

Major Metro Areas

Most businesses for sale in Texas are located in one of its major metro areas:

• Amarillo Metro Area
• Austin Metro Area
• Beaumont-Port Arthur Area
• College Station-Bryan Area
• Corpus Christi Metro Area
• Dallas-Fort Worth Metroplex
• El Paso Metro Area
• Houston Metro Area
• Jacksonville Area
• Killeen-Temple Area
• Laredo Metro Area
• Longview-Marshall Area
• Lubbock-Levelland Area
• Mcallen Metro Area
• Midland-Odessa Area
• San Angelo Area
• San Antonio Metro Area
• Texarkana Metro Area
• Waco Area
• Wichita Falls Metro Area

How many businesses are for sale in Texas?

Currently, there are approximately 3,300 businesses for sale in Texas. However, it is worth noting that many are listed 'blindly' meaning detailed information may only be revealed during the inquiry process.

In which cities are most businesses located?

The bulk of businesses available for sale in Texas are concentrated in key urban centers. Here are the 10 individual cities with the highest number of businesses for sale, offering a diverse range of opportunities for potential buyers:

• Houston: around 530
• Dallas: around 300
• Austin: around 190
• San Antonio: around 180
• Fort Worth: around 130
• Plano: around 70
• Frisco: around 60
• Katy: around 60
• Spring: around 50
• Sugar Land: around 40

These cities not only reflect the economic diversity of Texas but also highlight where demand and growth potential are most concentrated. Prospective buyers should consider these locales as starting points in their search for the right business opportunity. Keep in mind, not all businesses for sale in the above cities will be listed at the city level. To maintain confidentiality, many only list the county or state, which makes them a little more difficult to find.

What types of businesses are for sale in Texas?

A diverse array of business types are available for purchase. The most commonly listed include:

• Food and Restaurants: This category tops the list with around 700 businesses available for sale and includes Bars, Breweries, and Coffee Shops.
• Service Businesses: These are a close second with around 500 listings covering everything from laundromats and cleaning businesses, to landscaping and waste management companies.
• Other notable categories include Health Care and Fitness and Building and Construction (around 300 each), Retail (around 270), Automotive and Boat (around 200), and Manufacturing (around 160).

What is the average asking price for businesses in Texas?

The median asking price for Texas businesses on the market is $350,000, demonstrating accessibility for a variety of investment levels.

What is the average revenue and earnings of these businesses?

Businesses for sale typically report a median revenue of $650,000 and median earnings, or seller discretionary earnings (SDE), of $150,000.

What are the average valuation multiples in Texas?

On average, businesses in Texas are being sold for an earnings multiple of 2.3 (related to the asking price), and a revenue multiple of 0.5. This suggests for every dollar in earnings or revenue, respectively, the asking price reflects these multiples.

How can Texas business owners sell their own businesses?

Most opt for recruiting an experienced business broker to handle the sale, due to the intricate nature of these transactions. Some business owners choose to list the business directly and manage the process on their own. Remember, as the process is multifaceted, seeking professional assistance is generally advised.