Frequently Asked Questions

When marketing a business for sale, our agents act as intermediaries, controlling the flow of sensitive data and ensuring it is shared only with qualified buyers. They use confidential (blind) advertising that withhold the business’ name and sensitive details and hold buyer/seller meetings in controlled settings. Interested buyers are required to sign confidentiality agreements (NDAs) before they receive detailed information.

Calhoun Companies uses a variety of methods to find potential buyers. The most common way is tapping into their extensive networks of investors, entrepreneurs, business owners, industry contacts, etc. Businesses are also listed for sale on online platforms and marketed through direct outreach and targeted campaigns. By using these strategies, business brokers aim to create a wide pool of potential buyers and maximize the likelihood of selling the business quickly and at a fair price.

Key documents you’ll need to have organized include financial statements (balance sheets, profit and loss, tax returns), legal documents (business formation papers, contracts, employee agreements), a detailed list of assets (both tangible and intangible), customer contracts, employee information, licenses and permits, intellectual property documentation, debt and liability details, sales and marketing information, and a transition plan for the buyer. Not all of this info is shared with buyers right away, and all buyers will sign confidentiality agreements (NDAs), but having all of these on hand and organized will streamline the sales process.

On average, it takes between six months and a year to sell a business. But, the actual timing can vary based on a variety of factors including the complexity of the business, the asking price, market conditions, and even the time of year.

If you are in a hurry, the best ways to speed up the process are to ensure your financials and key documents are in order, be realistic with your pricing, and utilize your team of professionals (brokers, accountants, lawyers, etc.) to help.

There are several ways to determine the value of your business including evaluating its future income potential (income-based approach), calculating its net assets (asset-based approach), or, most commonly in business brokerage, using SDE (seller’s discretionary earnings) or EBITDA multiples (earnings before interest, taxes, depreciation and amortization). Intangible assets like brand value and customer loyalty also play a role in your business’ value.

With so many approaches on the table, the best way to determine your business value is to consult the experts. We offer free business valuations to give you clarity.

Buyers generally want profitable, turn-key businesses where they can start operating and making money on day one. Items like infrastructure, intellectual property, brand and strategic fit, and the ability for the business to run while the owner away can also make a business more attractive. To improve your business’ market appeal, focus on maximizing your business’ value by improving financial performance, operational efficiency, and scalability, building a loyal customer base, and reducing dependency on yourself as the owner and strengthen your brand.