How a sale works
How to sell your business.
A clear, step-by-step view of how a lower middle-market company is sold, who the buyers are, and what you can do now to get a better price.
Selling a company is usually the largest financial decision an owner ever makes. It's also one most owners make only once. A good process creates competition, protects confidentiality, and keeps the deal on track until the money is in your account.
The five steps
- 01
Value and prepare
We value the business, find anything that could lower the price, and fix what we can before a buyer looks.
- 02
Position
We build the story buyers pay for: a confidential memorandum and a financial model that holds up under diligence.
- 03
Reach buyers
We approach every credible buyer, including strategics, private equity, family offices, and independent sponsors.
- 04
Compete
Several buyers on one timeline. Competition sets the price and improves the terms.
- 05
Close
We run diligence, negotiate the purchase agreement alongside your attorney, and keep the deal on track to close.
Who buys companies like yours
Strategic buyers
Companies in or near your industry. They may pay for synergies, but often want full control and integration.
Private equity
Financial buyers who back management and grow the company, often with rollover equity for the owner.
Family offices
Long-term investors who value stability and may offer more flexible structures.
Independent sponsors
Experienced dealmakers who raise capital deal by deal and often want the owner involved.
What drives the price
Buyers pay a multiple of earnings, usually adjusted EBITDA. The multiple rises with size, growth, recurring revenue, diversified customers, and a strong team. It rises again when several qualified buyers compete on the same timeline. Estimate your range.
Price is only half the deal
Terms matter as much as the headline number: how much is paid in cash at closing, whether part is tied to future performance, what you keep in rollover equity, the working capital you leave in the business, and the promises you make in the purchase agreement. We negotiate all of it.
Questions owners ask
How long does it take to sell a company?
Most sales of lower middle-market companies take six to nine months from the start of preparation to closing. Preparation and diligence are where time is won or lost.
Will my employees and customers find out?
Not from us. Buyers sign confidentiality agreements before they learn your name, and we decide together when and how to tell your team, usually close to signing.
Can I sell only part of my company?
Yes. A recapitalization lets you sell a majority or minority stake, take cash off the table, and keep equity in the next stage of growth.
Do I have to stay after the sale?
It depends on the buyer and the deal. Many buyers ask the owner to help with a transition, from a few months to a few years. We negotiate this up front so it fits your plans.
Who are the likely buyers?
Strategic buyers (companies in or near your industry), private equity firms, family offices, and independent sponsors. The right mix depends on your size, sector, and goals.
What should I prepare first?
Three years of clean financials, a list of your top customers and contracts, and a clear picture of what the business would look like without you. Our checklist covers the rest.
Thinking about selling?
Start with a free, confidential valuation estimate, or talk to us directly. There is no cost and no obligation.