Selling a business is not like selling a house. There is no Zillow for companies, and the price isn’t determined by square footage. It is determined by the Perception of Future Cash Flow.
Many owners attempt a “For Sale By Owner” strategy to save on advisory fees. Unfortunately, this often leads to a lower “Net Proceeds” number at the closing table.
How an Advisor Pays for Themselves
Here is the math on how professional representation adds value:
- The Multiple (The Auction Effect)
When you sell yourself, you usually talk to one buyer at a time. When we sell for you, we bring multiple buyers to the table.
- DIY Sale: $1M Earnings x 3.0x Multiple = **$3.0M Price**
- Represented Sale: $1M Earnings x 4.0x Multiple (due to bidding war) = **$4.0M Price**
Even after a standard success fee, the represented seller walks away with hundreds of thousands more in their pocket.
- The Structure (Taxes)
A DIY seller might accept an offer that is heavily taxed as “Ordinary Income.” We negotiate for “Capital Gains” treatment where possible. The tax savings alone often cover the entire brokerage fee.
- The Success Rate
Industry stats suggest that less than 20% of “For Sale By Owner” businesses actually cross the finish line. They die in due diligence because the owner is distracted or emotionally overwhelmed.
The Bottom Line
An expert M&A Advisor acts as a buffer, a negotiator, and a project manager. We ensure you actually get to the closing table—and that the check is the size you deserve.
Don’t step over dollars to pick up dimes. Let us run a professional process so you can maximize your exit.