Seller FAQ

Most business brokers and M&A advisors work on a success fee—a percentage of the sale price paid at closing. At Waddell M&A our fees are 100% success-based, so you don’t owe us anything until your business sells. There are no upfront retainers.

Typically 6 to 12 months from engagement to close, plus preparation time depending on how ready your business and financials are. Confidential marketing, buyer screening, negotiation, and due diligence each take time when done properly.

Value depends on your industry, size, margins, recurring revenue, customer concentration, and how dependent the business is on you. Most businesses are valued using a multiple of SDE or EBITDA. Try our valuation calculator for a range, then request a free confidential valuation for a real number.

SDE (Seller’s Discretionary Earnings) adds the owner’s salary and perks back to profit—it’s used for smaller, owner-operated businesses. EBITDA (earnings before interest, taxes, depreciation, and amortization) is used for larger, management-run companies where the owner isn’t essential to daily operations. Which one applies affects your multiple.

You can, but most owners who try to sell alone either don’t find qualified buyers, breach confidentiality, or leave money on the table in negotiation. According to the IBBA, most businesses listed for sale never sell. A good advisor creates competition among vetted buyers and protects your leverage and privacy.

Every buyer is screened and signs a non-disclosure agreement before they learn the name of your business. Sensitive information is released in stages—high-level first, detailed financials only after screening and usually a signed letter of intent. This protects your employees, customers, and competitive position.

In an asset sale, the buyer purchases selected assets and you keep the legal entity; in a stock sale, the buyer purchases the entity itself, including its liabilities. The choice affects taxes and risk for both sides. See our asset vs. stock sale guide.

Buyers verify your financials, tax returns, contracts, customer concentration, payroll, licenses, and operations against what was presented during marketing. Being organized and prepared prevents price reductions late in the process.

Yes. Many deals include a transition period, employment or consulting agreement, or even a partial sale (rolling equity). How long you stay and in what role is negotiable and shaped around your goals.

Many small-business buyers use SBA 7(a) loans to finance acquisitions, which can broaden your buyer pool. These deals have specific requirements around seller notes, standby terms, and business qualification—we help structure the transaction so it’s financeable.

When the business is performing well, your financials are clean, and you’re personally ready. Selling from a position of strength—rather than waiting for burnout, health issues, or a downturn—almost always produces a better outcome.

Taxes depend on deal structure (asset vs. stock), entity type, and how the purchase price is allocated. We are not a CPA or law firm and don’t give tax advice—but we coordinate with your CPA and attorney so the structure supports your after-tax outcome.