FAQs

For Sellers

How far ahead of a desired exit should I be speaking with an advisor?

It’s never too early to plan, but if you want to increase value, improve your company’s marketability, and ensure a quick transition, you should start now.

Are buyers truly qualified?

Yes, all prospective buyers are carefully vetted for financial capability and required to sign confidentiality agreements.

How much is my business worth?

Multiple factors, including EBITDA, growth potential, and market conditions, drive business value. Accurate and transparent financial records significantly enhance valuation.

How do financial statement discrepancies affect valuation?

Transparency is key. Aligning financial statements and tax returns enhances your business’s appeal and ensures a fair valuation.

Is seller financing required?

Seller financing can be beneficial, but it isn’t mandatory. Businesses with strong financials may require less seller involvement, but offering financing can broaden your buyer pool.

How long will it take to sell my business?

Timelines vary. Have you planned for your exit? Your advisor will help you set realistic expectations based on market conditions, pricing strategies, and business attractiveness.

Will the buyer hire my employees after closing?

Employees are your key asset and typically remain unless the new owner initiates significant changes. Clear communication supports a smooth transition.

For Buyers

Do financial statements match tax returns?

Tax returns and financial statements often differ due to accounting methods and year-end adjustments like depreciation and amortization. We help you understand these details clearly.

How much upfront investment will I need?

Banks typically require a 10%-20% equity injection. 

Why don't tax returns show profits clearly?

Owners often minimize taxable income by claiming legitimate deductions such as owner salary and personal benefits. Understanding these can reveal the true business profitability.

Can seller financing be arranged?

Seller financing can be negotiated; however, this can be a risky strategy when competing for high quality opportunities.

Will banks finance this purchase?

Banks are eager to finance acquisitions with strong earnings. We recommend consulting multiple lenders to secure the most favorable terms.

What growth opportunities exist?

Buyers frequently discover untapped potential that current owners haven’t pursued. Sellers often share valuable insights on industry trends and opportunities.

What is EBITDA?

Earnings Before Interest, Taxes, Depreciation, and Amortization, typically used for assessing larger businesses.

How do I choose the right business?

The ideal business aligns with your skills, passions and lifestyle. A personal match often leads to greater satisfaction and success.

Why is the owner selling the business?

Common reasons include retirement, health issues, relocation or lifestyle changes unrelated to the business’s health.

Can I meet the employees?

Due to confidentiality, employees, customers, and vendors are unaware of the sale and are not introduced to a buyer until after the closing.

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