FAQ
Ask, Discover, & Understand
Valuation depends on earnings, assets, industry trends, and buyer confidence. Most small businesses are valued using a multiple of SDE (Seller’s Discretionary Earnings) or EBITDA. A professional valuation is key.
At minimum: 3 years of tax returns, P&L statements, balance sheets, bank statements, equipment lists, lease agreements, and customer/vendor contracts, insurance and warranties, and tax records. Clean, organized records build buyer trust.
Anywhere from 6 to 12 months is typical. Timing depends on industry, pricing, buyer pool, and how sale-ready your business is.
We first market to our over 20,000 qualified buyers in our database. We advertise on several popular business listing sites (BizBuySell.com, CABB.org, Dealstream.com, Businessbroker.net, Bizquest.com, Bizben.com are a few examples) giving your business exposure to thousands of Internet users. We also conduct targeted mail and email campaigns to specific buyer groups based on the features of each listing
Often yes, for a transition period (30–90 days). Some deals include a consulting agreement to ensure continuity.
Seller financing means you finance part of the purchase price. It can attract more buyers and signal confidence in the business.
Yes. Generally, the non-compete agreement covers the area from which your current customers are generated, and the time period usually equals the term of the financing you are providing to the buyer. For example, if your customers come from a three-mile radius of your business and you are providing the buyer with a five-year loan, you will be asked to sign a non-compete for a five-year period covering a three-mile radius from your business. If no seller’s financing is provided, the term of the non-compete agreement is usually three to five years.
Although it sounds cruel, our considerable experience has proven that it is best to tell your employees about the sale after the sale is complete. Of course, if there is an employee whose expertise will be needed after the sale, you should introduce the buyer to this employee shortly before closing. Your Accel intermediary can assist you in determining the timing for notifying employees.
No. We sometimes ask for a personal financial statement from the buyer, but we do not verify the information submitted. We do not run credit reports on buyers. It is your responsibility to conduct the due diligence on the buyer.
Remember that a negotiated deal is a deal that will close. Do not become offended by what you consider to be a “low” offer. Counter all offers on a timely basis.
It depends. You may assign the lease, sell the property, or retain ownership and lease it to the buyer. Clarify terms early and discuss it with your broker.
Capital gains tax applies to most sales. Asset vs. stock sale, allocation of purchase price, and deal structure all affect your tax bill. Consult a CPA early.
Typically: equipment, inventory, customer lists, goodwill, trade names, trade secrets, trademarks, patents, copyrights, telephone and fax numbers, websites, domain names, email addresses, and sometimes real estate. Clarify exclusions like personal assets or vehicles.
