Q&A Library

Q&A Library for Business Owners

Updated August 27, 2026

Business owners thinking about a sale tend to have the same core questions: how long does this take, what will I owe in taxes, who do I need on my team, and what happens to my people. This library answers those questions directly, with numbers and real-world context. Each page covers one question in depth. No lead forms, no vague summaries.

Deal Basics

How buyers think about price, the advisors involved, and the deal structures you will encounter.

How do buyers actually value a business? Most middle-market buyers use EBITDA multiples as the primary framework, but the multiple itself depends on five specific factors the seller controls.
What are investment banker fees in a middle-market deal? Middle-market M&A advisory fees typically run 3 to 7 percent of deal value plus a retainer, with the structure varying meaningfully by deal size.
What is a management buyout and how does it work? An MBO lets your management team buy the business, often combining seller financing and outside debt, and the economics work very differently from a third-party sale.
What is seller financing and when does it make sense? Carrying a portion of the deal as a seller note can increase total sale price and close deals that would not otherwise close, but it carries real credit risk.

Timing and Preparation

What a well-run exit actually takes in time, and how to know whether your business is ready for one.

How long does it take to sell a business? The active sale process runs 6 to 9 months; the full cycle from "I want to start thinking about this" to cash at closing is typically 24 to 36 months.
How do I know if my business is ready to sell? Business readiness comes down to six factors, and most businesses fail on two or three of them when they first run the assessment.
What happens during due diligence when selling a business? Buyers examine financials, legal, operations, customers, and contracts over 30 to 90 days post-LOI, and the level of prep you do beforehand determines how much re-trading you face.

Money and Tax

What you actually keep after a sale, and the structures that change that number before you sign.

What taxes will I pay when I sell my business? Federal capital gains tax, state tax, depreciation recapture, and Medicare surtax can combine to take 35 to 45 percent of proceeds without pre-sale planning.
Can I sell part of my business and keep running it? A partial sale or recapitalization lets you take liquidity now while retaining equity upside in a future full sale, and it is more common in the lower middle market than most owners realize.
What should I do with the money after I sell my business? The 90 days after closing are high-stakes financially, and the sequenced framework for deploying proceeds matters more than any single investment decision.

People and Process

What a sale means for the people inside your company, and how to think about representation.

What happens to my key employees when I sell? Key employees can be protected through stay bonuses, equity participation, and employment agreements negotiated as part of the deal terms.
Should I hire an investment banker to sell my business? For businesses above $10M in enterprise value, a sell-side investment banker typically recovers their fee many times over through competitive tension and deal structure.

Have a question that is not covered here? Bring it to a conversation.

Request a 30-minute call with an advisor and ask it directly.

Q&A Library for Business Owners

Deal Basics

Timing and Preparation

Money and Tax

People and Process

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