For Sellers
Questions owners ask before they sell
Straight answers on value, timing, confidentiality, fees, and what happens to the people who work for you. If your question is not here, call and ask it.
Value & Timing
What it is worth, and when to move
How much is my business worth?
Value comes down to earnings quality, how much the business depends on you, customer concentration, recurring revenue, and what buyers in your industry are currently paying. Two companies with identical revenue can be worth very different amounts. A confidential Opinion of Value gives you a real range and shows which of those factors are helping you and which are costing you.
How long does it take to sell a business?
Most transactions run six to twelve months from engagement to close, and larger or more complex deals can run longer. Preparation is what shortens it. Clean financials, documented add-backs, and a management layer beneath the owner let a deal move quickly instead of stalling in diligence.
Is it too early to talk to a broker?
Almost certainly not. Some of the best outcomes we see started two or three years before the transaction, with an owner who wanted to know the number and understand what would raise it. Early conversations cost nothing and commit you to nothing, and they give you time to fix what a buyer would otherwise discount.
What is SDE, and how is it different from my profit?
Seller's Discretionary Earnings is what the business actually produces for one owner working in it: net profit plus your compensation, benefits, and any personal or one-time expenses run through the business. It is usually well above the profit shown on your tax return, and it is the number most buyers of smaller businesses underwrite.
Confidentiality
Keeping the sale quiet
Will my employees find out I am selling?
Not from us. Buyers see a blind profile with no company name and no identifying detail. Your identity is released only after a buyer is qualified and has signed a non-disclosure agreement. In most of our transactions, employees learn about the sale after it has closed.
Should I tell my employees before we go to market?
Usually no, and there is a practical reason beyond nerves. Uncertainty causes good people to start taking calls, and losing key staff mid-process damages both the business and the deal. We help plan when and how the conversation happens, which is generally close to or after closing.
What about my customers and suppliers?
The same protection applies. Nothing is published, there is no sign in the window, and no public listing unless you specifically want one. Vendors and customers are told on your timeline, not the market's.
Process & Preparation
What the process actually involves
What documents will I need?
At minimum, three years of financial statements and tax returns, year-to-date financials, a list of furniture, fixtures, and equipment, your lease, and a documented list of add-backs. Having those organized before going to market is one of the highest return things you can do, because undocumented add-backs get stripped out in diligence at your multiple.
Do I need an attorney and a CPA?
Yes, and ideally ones who have handled business sales rather than only tax work or general practice. We coordinate with them rather than replace them. A broker runs the process and the negotiation; your attorney handles the documents and your CPA handles the tax consequences.
What if my business is not ready?
Then knowing that now is worth a great deal. Most of what lowers a valuation, owner dependence, undocumented earnings, customer concentration, a short lease, can be improved with time. The owners who get the best outcomes are usually the ones who found out two years early rather than two months late.
What is the difference between an asset sale and a stock sale?
In an asset sale the buyer purchases the assets and generally not the legal entity or its liabilities, which is how most smaller transactions are structured. In a stock sale the buyer purchases the entity itself. The distinction affects taxes and liability significantly for both sides, which is why your CPA and attorney are involved early.
Deal Terms & Money
Fees, structure, and your people
What does a business broker charge?
Brokerage fees are typically a success fee paid at closing, with the structure varying by transaction size and complexity. Larger M&A engagements are usually structured differently than smaller brokerage transactions. We explain our fee in full before you sign anything, and there is never a charge for a valuation conversation.
Will I have to finance part of the sale myself?
Sometimes, and it is not necessarily a bad thing. Seller financing can widen your buyer pool and often supports a higher total price. Whether it makes sense for you depends on the buyer, the structure, and your own risk tolerance, and it is one of the terms we negotiate rather than accept as given.
What happens to my employees after the sale?
Most buyers are acquiring the team as much as anything else and want people to stay. Retention is never guaranteed, but who takes over and how they treat your people is something we screen for during buyer selection, and it can be addressed in how the transaction is structured.
Can I sell to my family or my management team?
Yes, and we value and structure those transactions with the same discipline as a third-party sale. A defensible valuation protects family relationships and satisfies lenders, which matters more in an internal transfer, not less.
Still Have Questions
Ask them on a call
Most owners have questions that do not fit on a page. There is no cost to ask, and nothing you say leaves our office.
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