Selling A Business

While it can take less time, most transactions take nine to ten months from engagement to closing. That typically breaks down into roughly 60 days to prepare the marketing materials, 60–90 days of confidential outreach and discussions with potential buyers, and 60–120 days of due diligence and final negotiations.

Most transactions in our markets are valued as a multiple of Adjusted EBITDA. Buyers apply a multiple based on industry trends, the specific attributes of the business, and their own investment expectations. At a simplified level: Adjusted EBITDA × Multiple = Total Business Value. The Summary Valuation we provide before engagement gives you a realistic view of both numbers.

EBITDA is earnings before interest, taxes, depreciation, and amortization — a standard measure of a company's operating cash flow. Adjusted EBITDA normalizes that figure to show what the business would earn under new ownership by adding back one-time expenses, above-market owner compensation, personal expenses run through the business, and other items that won't continue after a sale. It is the number most buyers use to value a business.

A multiple is the factor applied to Adjusted EBITDA to determine total business value. For example, a “multiple of 5x” means a business with $2M of Adjusted EBITDA would be valued at approximately $10M. Multiples vary by industry, business size, growth trajectory, and the level of risk a buyer perceives.

Buyers pay the highest multiples for businesses that reduce their risk. The most important factors include consistent profitability and financial stability, clean and well-organized financial records, a strong management team that doesn't depend entirely on the owner, a diversified customer base, and durable supplier and customer relationships. Growth potential matters too — but predictability is what commands a premium.

A strategic buyer is a company already operating in or near your industry — a competitor, supplier, customer, or complementary business — that acquires your company for what it adds to their existing operations: products, customers, capabilities, or geography. A financial buyer, such as a private equity firm, acquires your company primarily as an investment, focusing on earnings, growth potential, and eventual resale value. Strategic buyers may pay a premium for synergies; financial buyers often offer more flexible structures, including opportunities for owners to retain a stake or stay involved. We market to both, and knowing which type values your business most is a key part of our process.

There are no firm guidelines, but our sell-side clients typically range from approximately $8M to $50M in revenue, or roughly $1M to $10M in Adjusted EBITDA. If your business falls outside that range, we're still glad to have a conversation and point you in the right direction.

Confidentiality is built into every step of our process. No potential buyer is contacted without your prior approval, initial outreach uses a blind teaser that does not identify your company, and no buyer sees detailed information until they have signed a non-disclosure agreement. While no process can carry an absolute guarantee, protecting your confidentiality is one of our highest priorities throughout the engagement.

We prepare two core documents: a blind teaser — a brief, anonymous profile used for initial outreach that describes the opportunity without identifying your company — and a Confidential Information Memorandum (CIM), a comprehensive presentation of your business, financials, and growth opportunities shared only with qualified buyers under NDA. We also produce any additional analyses or materials needed to address buyer questions or showcase the unique attributes of your company. You approve everything before it is used.

No, but it helps. Reviewed financials are common, and even compiled financials are workable. Audited financials can reduce the time and uncertainty of the Quality of Earnings review and due diligence, but they are not required to sell a company.

Due diligence is the buyer's detailed verification of your business after a Letter of Intent is signed — a structured review of financial records, operations, customers, contracts, legal matters, and other key aspects of the company. It typically takes 60–120 days. We manage the process on your behalf: organizing information, coordinating with the buyer's team, and keeping the transaction on schedule.

Beyond your M&A advisor, the two essential team members are an attorney and a CPA — ideally each with real transaction experience, which is a different skill set than general legal or tax work. If your current advisors haven't worked through a business sale, we can recommend experienced professionals from our network. The right team protects both your value and your timeline.

There is no single right answer — it depends on your relationship with your employees and leadership team, and on the role key managers may play in the sale process. Some owners inform a small circle early; most wait until closing is certain. We help you think through the risks and benefits of each approach and build a communication plan that fits your situation.

Usually for a period, but rarely forever. Most buyers want a transition period — commonly six months to two years — to transfer relationships and knowledge, and some structures include ongoing roles or retained ownership stakes if you want them. Your goals for life after the sale are part of how we structure the process and select the right buyer from the start.