What owners and buyers ask us most.
Straight answers to the questions that come up in almost every first conversation. If yours is not here, ask us directly.
Selling your business
How long does it take to sell a business?
Most sales of established businesses take six to twelve months from engagement to closing. Preparation, the size and complexity of the business, market conditions and the buyer’s financing all affect the timeline.
How do you keep the sale confidential?
Your company is never named in our initial marketing. Buyers first see a blind teaser that describes the business without identifying it.
Identifying details are released only after a buyer signs a non-disclosure agreement and we have qualified them. Communication runs through us, and you decide when to tell employees, customers and suppliers.
What is my business worth?
Value depends mainly on reliable earnings and on how much risk a buyer takes on to get them. Growth, recurring revenue, customer concentration and how much the business depends on you all move the number. The first step is a confidential consultation, followed by an opinion of value.
How are you paid?
Our fees are set out in a written engagement agreement before any work begins, and we walk through them openly in our first conversation so there are no surprises.
Do I need to be ready to sell before I talk to you?
No. Many owners call a year or more before they plan to sell. Starting early gives you time to address issues that would reduce value or slow a sale.
What happens to my employees?
Most buyers want to keep a business’s team, because the people are a large part of what they are paying for. We plan with you when and how to tell employees, and retention arrangements can be part of the negotiation.
Will I need to stay on after the sale?
Usually for a transition period, so customers, suppliers and staff get to know the new owner. Its length is negotiated and can range from a few weeks to longer consulting or employment arrangements.
Do I have to accept all cash at closing?
Not necessarily. Many deals combine cash at closing with seller financing, an earnout tied to future performance, or rollover equity. The right mix depends on your goals and on what buyers can finance. We help you weigh the trade-offs.
Buying a business
How do I get details on a listing?
Click Request the CIM on the listing. We will send a non-disclosure agreement; once it is signed and we have qualified your interest, you receive the confidential information memorandum and a call to discuss it.
Who do you represent?
When we list a business, our client is the seller. If you would like us to represent you in a search for a business, we agree the scope and terms in writing first.
What do I need in order to buy a business?
Clear acquisition criteria, proof of funds or a realistic financing plan, and relevant experience or a strong management plan. For smaller acquisitions, SBA-backed loans are a common source of financing.
Can you help with financing?
We do not provide financing ourselves. We can suggest lenders who regularly finance acquisitions and coordinate with your lender during due diligence.
Key terms to know
The vocabulary you will hear in almost every transaction, in plain English.
- Asset sale
- The buyer purchases the business’s assets, such as equipment, inventory, contracts and goodwill, while the seller keeps the legal entity. Common for smaller businesses.
- Stock sale
- The buyer purchases the owners’ shares in the company, taking on the entity itself along with its contracts and liabilities.
- SDE
- Seller’s discretionary earnings: pre-tax profit plus the owner’s compensation, benefits and non-recurring or personal expenses. Used to value owner-operated businesses.
- EBITDA
- Earnings before interest, taxes, depreciation and amortization. Used to value larger businesses with management in place.
- Add-backs
- Expenses added back to profit when recasting financials because a new owner would not incur them, such as one-time legal costs or personal expenses.
- CIM
- Confidential information memorandum: the detailed document describing the business, shared with buyers after they sign an NDA.
- LOI
- Letter of intent: a mostly non-binding document setting out the proposed price, structure and key terms before due diligence begins.
- Due diligence
- The buyer’s detailed review of the business’s finances, operations, legal matters and contracts before closing.
- Seller financing
- The seller lends part of the purchase price to the buyer, repaid over time. It can widen the pool of buyers and support a higher price.
- Earnout
- Part of the price paid later, depending on the business hitting agreed performance targets after closing.
- Rollover equity
- The seller keeps a minority stake in the business after the sale, sharing in its future growth.
- Working capital
- Current assets minus current liabilities. Purchase agreements usually require a normal level of working capital to be delivered at closing.
Ready to explore
your options?
Whether you’re thinking about selling, seeking an acquisition, or simply want to understand your business’s market value, every conversation starts with a confidential 30-minute call.