SELLING A BUSINESS
For Sellers
Readiness depends on both the business and you. Common signs a business is ready:
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Financial statements and tax returns are current and consistent
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Daily operations do not depend entirely on the owner
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Leases, contracts, licenses, and permits are in order
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You have a clear sense of your personal goals and timing
Starting early gives you more time to address gaps. Our Seller Readiness Checklist can help you take stock.
An asking price usually starts with a review of the business’s earnings, its assets, and how similar businesses have sold. Common approaches are income-based, market-based, and asset-based.
Other factors also matter, such as customer mix, staff, lease terms, and growth potential. An asking price is a starting point; the final price is negotiated with a buyer and is never guaranteed. Learn more about selling a business.
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Yes. Many owners prefer that employees, customers, and competitors not learn about a possible sale too early.
A common approach is to share details only with interested buyers who sign a confidentiality agreement. For our current listings, the detailed information kit is released only after a confidentiality agreement is signed. Contact us to start a confidential conversation.
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Buyers, lenders, and advisors will typically ask to review:
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Business tax returns and financial statements (profit and loss, balance sheet) for recent years
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Year-to-date financials
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Leases, major contracts, licenses, and permits
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Lists of equipment, inventory, and staff roles
Your accountant can help confirm that records are accurate and consistent. See our Seller Readiness Checklist for more.
It varies widely. Timing depends on preparation, pricing, the buyer’s financing, due diligence, lease or license transfers, and how quickly both sides respond.
No timeline can be promised, but early preparation often helps the process move more smoothly. Read more about the selling process.
It may be possible. Some owners sell the business, keep the real estate, and lease it to the buyer. Others sell both.
Each path affects price, buyer financing, taxes, and lease terms, so discuss it early with your accountant and attorney. If real estate is part of your plans, mention it at the start so it can be part of the conversation.
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An initial conversation is a chance to talk about your business, your goals, and your timing, and to ask questions about the process.
You might discuss what you hope to achieve, any deadlines, and which records are available. It is also a chance for both sides to decide whether working together is a good fit. Request a conversation.
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In the business brokerage industry, fees are typically set out in a written agreement before work begins and are generally paid by the seller. Fee structures vary by firm and with the size and complexity of a sale.
We are happy to explain our approach in a conversation before you commit to anything. Contact us with questions.
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BUYING A BUSINESS
For Buyers
Start by getting clear on what you want: industry, location, size, your role in daily operations, and your budget. Then:
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Browse our current Businesses for Sale
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Prepare a personal financial statement and résumé, which sellers and lenders often request
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Talk with your accountant and attorney early
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Clear goals help narrow the search. Useful details include:
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Industries and locations you are interested in
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Your price range and how much cash you can invest
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Whether you plan to run the business yourself
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Your relevant experience and preferred timing
You do not need to send account numbers or other sensitive financial documents in a first inquiry. Share your buying goals.
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Revenue: total sales before any expenses are subtracted.
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SDE (seller’s discretionary earnings): earnings before taxes, interest, depreciation, amortization, and one-time items, plus one owner’s compensation and personal expenses paid by the business. Often used for smaller, owner-operated businesses.
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EBITDA: earnings before interest, taxes, depreciation, and amortization, without adding back owner compensation. Often used for larger businesses with management in place.
Have your accountant verify any figures. Our Business Buyer Guide covers owner earnings in more detail.
Sellers often have not told employees, customers, or competitors that their business is for sale. A confidentiality (non-disclosure) agreement protects that sensitive information while you review it.
For our current listings, a signed confidentiality agreement is required before the detailed information kit is shared. Read any agreement carefully, and ask your attorney about its terms. View Businesses for Sale.
Plan for more than the price itself. Common additional costs include:
Working capital for payroll, rent, and operating expenses after closing
Inventory or equipment, if priced separately from the business
Fees for your accountant, attorney, and lender, plus any down payment a lender requires
Licenses, permits, insurance, and lease deposits
The right amount depends on the business and your financing, so build a budget with your accountant before making an offer.
It can be. Buyers often combine their own cash with a bank loan. SBA 7(a) loans, made by participating lenders and partly guaranteed by the U.S. Small Business Administration, can be used for changes of ownership.
Some sellers also accept part of the price over time, called seller financing. Availability and terms depend on the lender, the seller, and the business, and approval is never guaranteed. Talk with a lender early.
Sometimes. In some sales the building is included or offered separately. In others, the owner keeps it and the buyer leases the space. Listing details should note whether real estate is included.
If owning the property matters to you, say so early. Involve your attorney, your lender, and appropriate real estate professionals to review title, zoning, environmental questions, and lease terms.
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Most buyers benefit from their own independent team, such as:
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An accountant or CPA to review financials and tax effects
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An attorney to review contracts, leases, and the purchase agreement
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A lender, if you plan to finance
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An insurance agent, plus specialists such as an equipment appraiser or franchise attorney when relevant
These advisors work for you and help you judge whether a business fits your goals and budget. Learn more about buying a business.