Selling Your Business: Frequently Asked Questions
These are the questions business owners ask me most about selling a business. Have a question that isn’t here? Let’s talk.
An M&A advisor or business broker represents an owner through the sale of their business. I help you understand what your business is worth, prepare it for market, find and qualify buyers while keeping the sale confidential, negotiate the deal, and manage due diligence through closing.
Buyers pay for profit, not revenue. Most small and mid-sized businesses are valued as a multiple of their cash flow (seller’s discretionary earnings or EBITDA). Your industry gives a range for that multiple. The quality of your business sets where you land in that range, and much of that is in your control if you prepare. An opinion of value is the best place to start.
Businesses valued from about $50,000 to $50 million, from Main Street to the lower middle market, in any industry. My process is what sets me apart, and it works across industries.
In my practice, the average is nine to ten months from signing with a broker to closing. Preparing the business, finding and qualifying the right buyer, financing, and due diligence all take time, so the sooner you start, the better.
Fees depend on the size of your deal. Let’s talk through it on a call.
Listings don’t name your business, and buyers sign a confidentiality agreement and are screened before they see any identifying details. Your employees, customers, and competitors don’t need to know until you decide it’s time.
Buyers are buying a business that keeps running, and the employees are a big part of that. Buyers worry about employees leaving and often give them incentives to stay, so employees are usually in a good spot when a business sells.
Start with clean financials: three years of tax returns and P&Ls. Then ask two questions. What roles do you play in the business, and what role would a buyer have to fill if you left? The shorter that list, the more valuable your business is to a buyer. For more, read What Not to Do: 8 Biggest Mistakes Business Owners Make When Selling Their Business.
Now. Every owner exits eventually, whether by choice or because of one of the five Ds: death, disability, disease, divorce, or disenchantment. Even a year of preparation can make a huge difference, and preparing early means you sell on your terms.
I’m based in Castle Rock, Colorado, and work with business owners across Douglas County, the Denver metro, and the Colorado Front Range.
Sí. I’m fluent in Spanish and work with owners in English or Spanish.