Frequently Asked Questions

When should I think about selling my business?

The answer is when you first start your business you should be thinking about an eventual exit strategy. If you didn’t think about it then the best time is when a business is growing and there’s a strong market with high valuations for a particular industry.

Why should I hire a broker instead of selling business on my own?

Most successful business owners will be approached at some point by a buyer who is interested in acquiring their business. By choosing to sell directly to one interested buyer, the business owner has not tested the market and allowed a competitive bid process, potentially leaving significant money on the table. Furthermore, the process of selling a business is very complex and often results in deals falling through due to the many hurdles that must be overcome.

An expert M&A Advisor understands how to confidentially market the business to a pool of selected buyers then negotiate the highest purchase price. After the Letter of Intent is signed the M&A Advisor manages the confirmatory diligence process which ultimately leads to a definitive purchase agreement. Impact Acquisition provides “white glove” services to its clients, navigating through the entire process from start to finish so our clients can focus on continuing to run their business until we get to the closing table.

How much is my business worth?

EBITDA is an accounting acronym for Earnings Before Interest, Tax, Depreciation, and Amortization. This is a measure of the adjusted cash flow of a business and one of the most widely recognized methods for determining the value of a business. Depending on the size of the business and type of industry, some multiple of EBITDA is the most common estimator of the business valuation.

In addition, other commonly used terms are AEBITDA, Adjusted EBITDA with add backs for seller discretionary earnings (SDE), and EBITDAR, EBITDA plus restructuring/rent costs which is often used when there will be some adjustment for new rent or restructuring costs.

Who are the buyers?

Impact Business Brokerage has developed an enormous database across a wide variety of industries over the past two decades. Our buyers include:

Strategic buyers seeking business expansion
Corporate buyers seeking diversification
Financial buyers seeking passive income
Industry buyers seeking bolt-on acquisitions

How can I feel safe that my employees and customers won’t find out my business is for sale?

Confidentiality is the cornerstone of everything we do at Impact Business Brokerage. We realize the consequences could be devastating for both the seller and the buyer if the word gets out before we have a Definitive Purchase Agreement and can control the narrative. Our potential buyers will only review a generic teaser about the business and an internal file number until they have been vetted and signed a Non-Disclosure Agreement (NDA).

While my business is on the market what will I need to do in the process?

First and foremost, the best policy is to keep running and growing your business as if you are never going to sell it. The most important aspect of getting the highest sale price is that the business is performing well and sustaining a growth trajectory. Impact Business Brokerage will get very granular in the initial data collection so that we can field questions from potential buyers and manage the process, while you focus on continuing to operate business.

Maximize Your Business Transaction

Impact Acquisition has the expertise and relationships to get your business prepared for a potential sale, find the perfect buyer and manage your transaction through a successful closing. Trust your future to Impact Acquisition.

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