The Business Sale Process
A structured approach to ensure a successful transaction
Valuation
Determine fair market value based on financials and market conditions
Confidentiality
Discrete marketing to protect your business and employees
Buyer Screening
Qualify serious buyers with financial capability
Negotiation
Skilled negotiation to maximize value and terms
Business Valuation Methods
Understanding how businesses are valued helps set realistic expectations
Asset-Based
Value of tangible assets minus liabilities. Best for asset-heavy businesses or liquidation scenarios.
Income-Based
Based on earnings (SDE or EBITDA) multiplied by industry factor. Most common for profitable small businesses.
Market Comparison
What similar businesses sold for. Useful when comparable sales data exists.
Pro Tip: SDE vs EBITDA
Small businesses typically use Seller's Discretionary Earnings (SDE): net profit plus owner salary and perks. Larger businesses use EBITDA. Properly calculating and presenting these figures is crucial. Buyers and lenders scrutinize these numbers closely.
UP Business Types & Typical Multiples
*SDE = Seller's Discretionary Earnings. Multiples vary based on business specifics, market conditions, and buyer financing.
For Business Buyers
- Business opportunity identification
- Financial analysis and due diligence
- Valuation assessment
- Negotiation representation
- Transaction coordination
- Transition planning support
For Business Sellers
- Business valuation
- Confidential marketing
- Buyer qualification
- Offer negotiation
- Due diligence management
- Closing coordination
Transition Planning
A smooth transition protects the business value you worked so hard to build
Pre-Closing (30-60 days)
- Employee introductions
- Customer relationship handoffs
- Vendor account transitions
- Training schedule creation
Transition Period (30-90 days)
- Daily operations training
- Customer introductions
- Supplier meetings
- System and process documentation
Post-Transition
- Consulting availability (if agreed)
- Non-compete period begins
- Final payment milestones
- Relationship maintenance
Confidentiality is Paramount
I understand the sensitive nature of business sales. All inquiries and transactions are handled with the utmost discretion to protect your employees, customers, and business reputation. Buyers sign NDAs before receiving any identifying information about your business.
Common Seller Mistakes
- • Telling employees or customers too early
- • Not preparing financials properly
- • Overpricing based on emotion, not data
- • Neglecting the business during the sale process
- • Not planning for life after the sale
Business Sales FAQs
How long does it take to sell a business?
Most small businesses take 6-12 months to sell. Factors affecting timeline include asking price, business performance, industry, and financing availability. Well-prepared businesses with clean financials sell faster.
What documents do I need to sell my business?
At minimum: 3 years of tax returns, profit & loss statements, asset list, lease agreements, and any contracts (employees, vendors, customers). I help you organize everything buyers and lenders will request.
Should I tell my employees I am selling?
Generally no, not until a sale is imminent or you have specific concerns. Employee uncertainty can hurt business performance and leak to customers or competitors. We structure deals to protect your team.
How are business sales typically financed?
Often a combination: buyer down payment (10-30%), SBA loan (most common for small businesses), and seller financing (10-30%). Sellers who offer financing often get higher prices and faster sales.