About > FAQs > Selling Process

How long does it take to sell a company?
We have sold companies in as short a time frame as 1 month and others have taken as long as a year. Most closings take place between six and twelve months from the date we begin our work. Generally, the reasonableness of the price, terms and conditions will dictate the time required.

What are your fees?
Compensation is earned only when a closing occurs. Our fees are competitive within the industry. They are a percentage of the transaction price and depend on the size and difficulty of the project.

How do we start this process?
The initial step is to hold a totally confidential, no-obligation assessment meeting. The purpose of this meeting is to determine whether to proceed to the next step. Meetings can be held at your business or our office or some other place of confidentiality you might prefer. In addition to learning about your business, we want to completely understand the personal and business objectives of our prospective clients. We also explain the sale or acquisition process and our role in it.

How much of management’s time will be needed in the process?
Management will be involved initially to help us gather the information we need about the business. This usually takes 2-4 hours. During the sales process, we will limit the how much time we need from management, as they should continue to run the business. Once we have located a buyer, management will need to be involved. Even then, we will attempt to limit our interaction with them, only providing them with progress reports or following up with pertinent information.

What other advisors are needed?
As business brokers we are limited in the advice we can provide to you. To address legal and financial issues (including taxes and financial books), we recommend that you hire attorneys and accountants that specialize in small business acquisitions. Depending upon the type of business that you are purchasing you may require other types of professionals.

Who sets the asking price?
To appropriately value your business, EBB will evaluate your business looking at factors such as the last 3 years of sales and profits, lease agreements and balance sheet.

How do you value a business?
Valuing a business is not an exact science and is very subjective. We use a multiple of the seller’s discretionary cash (SDC) plus the fixed assets to determine a business’ worth in the marketplace.

Should it be a stock or asset sale?
To avoid assuming unknown liabilities of the selling corporation, most buyers acquire the businesses assets vs. the stock of the corporation.