Knowledge Base

Begin with a confidential consultation and readiness review: gather the last 3 years of financials, clarify owner objectives, and decide on representation (advisor or broker). Next, prepare a sale memorandum, identify potential buyer types, and set an initial valuation framework. We typically recommend a phased approach: preparation → market outreach → due diligence → negotiation → completion.

Valuation commonly uses EBITDA as a base multiplied by an industry-specific multiple (EBITDA × multiple). Factors that influence the multiple include earnings stability, market position, growth prospects, operational risks, and management continuity. Multiples for SMEs typically range from 1.5x to 5x, but each business is unique — a formal valuation provides a defensible asking price.

Legal steps include: preparing sale agreements (heads of terms), performing due diligence, completing warranties and indemnities, negotiating payment terms (including escrow or earn-outs), obtaining regulatory approvals (if required), and completing share/asset transfer documentation. Tax implications should be reviewed with legal and tax advisors.

Costs typically include advisory fees (M&A advisor or broker), legal fees, accounting/valuation fees, and potential tax liabilities. Costs vary by transaction complexity and region. Some fees are success-based (e.g., a deal-contingent advisor fee), while others (legal, accounting) are fixed or hourly. We help estimate and manage these costs up front.

Buyers may be: strategic competitors, private equity or investment firms, angel investors, or industry-specific financial sponsors. Buyers are sourced through advisors’ networks, targeted outreach, industry contacts, and proprietary deal channels. Confidentiality is vital during outreach; we use discreet processes to protect business value and relationships.