10 frequently asked questions about selling a business. Direct answers from the WETYR research team.
How long does it take to sell a business?
Typical M&A transactions close in 6-12 months from going to market. Including pre-sale preparation, the full timeline is 12-24 months. Owners who try to sell in 90 days usually have less leverage on price and terms. Clean books, current licenses, and a decisive seller keep a sale at the short end of that range.
How much does it cost to sell a business?
Brokers and M&A advisors who run a sale typically charge a retainer plus a success fee, for a total of about $25,000 to $60,000 per $500K of sale price. Brokers, typically used under $2M, charge about $40,000 to $60,000 per $500K; M&A advisors, used for $2M-$50M deals, charge on a Modified Lehman scale or about $20,000 to $30,000 per $500K. A direct sale to an operator-buyer carries no commission to the seller.
What is my business worth?
Service businesses sell at 2-6x EBITDA, SaaS at 3-15x ARR, platform-grade at 8-15x+. Multiple depends on recurring revenue, owner dependency, customer concentration, growth, and team retention. WETYR provides a free, confidential range estimate. Your adjusted earnings, after add-backs, are the base the multiple is applied to.
How do I prepare to sell?
Start 12-24 months before going to market. Optimize the value drivers (recurring revenue, owner independence, customer diversity), clean financials, document operations, and build the buyer-ready data room. A pre-sale readiness review shows which fixes are worth making and which can wait.
What are the tax implications?
Asset sales create ordinary income on some assets and capital gains on others. Stock sales create capital gains. Section 1202 (QSBS) allows up to $10M+ in capital gains exclusion for qualifying C-corp stock held 5+ years. Work with a CPA familiar with M&A.
Should I use a broker, M&A advisor, or sell direct?
Broker: under $2M deals. M&A advisor: $2M-$50M. Investment banker: $50M+. Operator-buyer (no commission): any size when alignment matters. WETYR is not a broker or advisor: it can introduce you, free, to registry buyers whose buy box fits, or make a direct offer to buy the business for its own account. Compare the options on net proceeds after fees and certainty of close, not on headline price alone.
What is a quality of earnings (QoE) report?
Independent third-party financial review verifying that reported EBITDA reflects sustainable cash flow. Buyers commission QoE during due diligence. Pre-sale QoE prepared by sellers strengthens negotiation position. It also surfaces problems early, while the seller can still fix or explain them before a buyer uses them to cut the price.
What is an earnout and should I accept one?
Earnout = portion of purchase price contingent on post-close performance. Earnouts bridge valuation gaps when buyer and seller disagree on future performance. Accept earnouts when the upside is meaningful and the metrics are within your control. Negotiate clear metrics, a short term, and reporting rights before you sign.
Will my employees stay after the sale?
Depends on the buyer. Operator-buyers typically retain teams. PE platforms often retain initially then consolidate. Strategic buyers often integrate (rebrand, consolidate). Negotiate no-RIF windows in the LOI. Ask each buyer about its plans for the team before signing, and put any commitments in writing.
How do I keep the sale confidential?
Use NDAs, run a targeted (not public) process, structure outreach through an advisor who can introduce buyers without revealing the seller. Avoid public marketplace listings if confidentiality matters. Share financials in stages, only after a mutual NDA, and tell staff on your timeline, usually at or after closing.
Start a Confidential Conversation
Mutual NDA before any financials. WETYR responds within one business day.
Last updated: 2026-04-28
Selling A Business: Common Questions Answered
This FAQ collection answers the questions WETYR receives most often about selling a business. Each answer is written by operators who have lived the work - not lifted from generic advisor templates. Owners and operators who read these FAQs end up walking into their next conversation with WETYR (or with any advisor) substantially better prepared, which is the goal. Better-prepared clients reach better outcomes. We give the answers away because that compounds trust.
The questions cover the practical side of selling a business - pricing, timeline, who-does-what, decision frameworks, and the trade-offs that aren't covered in generic content. If your specific question isn't on this page, the right next step is either the relevant long-form guide or a direct call with our team. We respond to every inbound inquiry within one business day.
When To Engage An Advisor
The general rule for selling a business: engage an advisor 12-24 months before the transaction window if you have flexibility, or as soon as possible if the window is shorter. Owners who engage 6+ months out routinely receive premium offers; owners who engage 30 days out routinely accept whatever the buyer puts on the table. The pre-engagement diagnostic is where most of the leverage is created.
For selling a business-specific questions, WETYR's role is narrower than an advisor's. WETYR can introduce owners to registry buyers whose buy box fits, free to owners, help buyers find off-market targets, or buy a business directly for its own account. If you want someone to run a sale process or negotiate for you, hire your own licensed broker or advisor. The free introductory call is the cleanest way to see whether any of WETYR's options fit your situation.
Authoritative Sources & Further Reading
WETYR relies on primary sources, regulators, and industry data providers for its research and education. The references below are the same sources our research team uses when benchmarking multiples, modeling acquisitions WETYR makes for its own account, and stress-testing assumptions. We encourage every owner, buyer, and operator to verify any data point that materially affects their decision against the underlying primary source.
Primary Federal Sources
- U.S. SBA - 7(a) Loan Program for acquisition financing eligibility, terms, and lender list.
- SEC EDGAR for public-company comparables, 10-K disclosures, and recent strategic acquirer filings.
- IRS - Sale of a Business on Section 1060 asset-allocation reporting and tax treatment of asset vs stock sales.
- U.S. Bureau of Labor Statistics - Industries at a Glance for wage, employment, and growth data by NAICS code.
- U.S. Census Economic Census for industry size, firm counts, and revenue distributions.
- Federal Reserve Economic Data for prevailing rate environment underwriting.
Standards & Reference Bodies
- AICPA for Quality of Earnings methodology and CPA standards governing transaction-related financial work.
- FINRA Rules and Guidance for understanding when a transaction crosses into broker-dealer territory.
- NACVA business valuation credentialing body and standards (CVA designation).
- USPAP - Uniform Standards of Professional Appraisal Practice for valuation engagement standards.
- Investopedia - EBITDA reference page for definitional alignment with our glossary.
- Harvard Business Review - Mergers and Acquisitions archive on integration and post-close value creation.
For deeper transaction-specific data, the GF Data and PitchBook private-company transaction databases publish quarterly multiple ranges by industry size band that we cross-reference against our own pipeline benchmarks. Owners considering a sale should also review the Pepperdine Private Capital Markets Report (free, annual) for current cost-of-capital and lender appetite data across the lower middle market. Buyers underwriting search-fund or holdco theses commonly pair Stanford GSB's Search Fund Study with the IBBA Market Pulse report, which tracks multiples for sub-$50M transactions quarterly. None of these sources replace deal-specific advice from your own attorney, CPA or advisor, but they give owners and operators the same reference points professional acquirers are using on the other side of the table.
Related WETYR Resources
Every WETYR resource connects to a practical next step. Whether you are diagnosing readiness, modeling a number, or preparing for a specific transaction phase, the resources below cover the most common owner and operator workflows. All tools are free; all guides are operator-written; every conversation with WETYR starts in confidence.
Engagement Pillars
Decision Tools
Operator-Written
Glossary & FAQ
Checklists & Templates
Niche Coverage
If you are not sure where to start, the Exit Readiness Score takes about four minutes and produces a one-page diagnostic on the value drivers most likely to compress your multiple. From there the natural next step is either a long-form guide covering your specific situation, a focused glossary term lookup, or a confidential introductory call with our team to see whether a buyer introduction, buyer sourcing, or a direct offer from WETYR as a buyer is a fit. Our team responds to every inbound inquiry within one business day.
WETYR provides business consulting, marketing to find acquisition targets for buyers, and introductions between business owners and buyers. WETYR is not a business broker, M&A advisor, investment bank, registered broker-dealer, FINRA member, SEC-registered investment adviser, attorney, or CPA. WETYR does not negotiate for either side; price and terms are set by the owner and buyer with their own advisors. After an introduction, owners and buyers deal directly with their own attorney, CPA and, if they choose, their own licensed broker or advisor. Transactions involving real property or securities require appropriately licensed professionals. Information provided on this website is for general informational purposes only and is not legal, tax, accounting, or investment advice. Consult your own qualified professionals before making any business or financial decision. Past results do not guarantee future outcomes.