Seller FAQ's

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Frequently Asked Seller Questions

Like most things in business, the answer is, “it depends.” Typically, sales prices fall between:

  • 1 – 1.75X gross revenue (or)
  • 3 – 8X EBITDA

Keep in mind that final prices can move higher or lower than these estimates, depending on a variety of factors. We can give a more accurate answer after walking through an analysis of your specific business.

It depends on the motive of the acquirer. Often times, a strategic buyer, consolidator or Private Equity company will want to keep the business in tact. These buyers often purchase a company based on EBITDA, and aim to keep as many things in place as possible, including personnel. They do this to increase their likelihood of maintaining the same future cash flows as the seller has experienced.

Other buyers, including local, regional and national consolidators will want to simply “bolt-on” the business to the acquirers existing business. In these instances, often times employees are not retained as it doesn’t make fiscal sense for the acquirer. 

This is one of the reasons we try to create a competitive bidding environment for your business. We know often times you are just as concerned with what happens with your employees as what happens financially as a result of the sale. We’re here to guide you through that process. 

The process includes:

  • Discovery Call
  • Mutual NDA that is signed between us and the prospective seller
  • Full financial valuation and company analysis
  • Go-to-market strategy
  • Buyer meetings
  • Offer management
  • Negotiation Closing Process                          

For more information, please visit Our Process page 

We defer to the timeline of the seller. The average time to sell your company, once you have made the decision to do so, should take between 60-90 days. Transactions can move much faster, closing in as little as 20 days, or could take much longer, meaning many months or even years to close, but on average you can expect 60-90 days.

The most important thing you need to do before going through the process of selling your company is to carefully consider why you want to sell. Often times people look to sell in a moment of frustration or despair, or don’t fully consider all outcomes, then wind up regretting the decision after sale is complete.

You also need to have a plan for what you will do after the sale. Many sellers are shocked when they suddenly wake up one day after the sale and effectively have nowhere to go and nothing to do. This can lead to a variety of issues, so know what you plan to do once you are “out” of your current business.

Once you have determined your “why” … we can walk you through the rest.

It depends on what services you are looking for and what you would like us to do for you. We work with some clients on a contract basis, similar to what a consultant would use, and in other arrangements we utilize a success fee upon the completion of a sale. 

Ready to take the next steps?

We would love to connect with you to help answer any questions you may have.