How do I find buyers for my business?
Buyers fall into four types, and each pays differently. Individual buyers typically pay 2-3x SDE, search funds 3-5x EBITDA, private equity 4-8x EBITDA, and strategic acquirers 5-10x EBITDA. Knowing which type fits your business tells you where to look: an owner-operated shop with under ~$1M of earnings will mostly attract individuals and search funds, while a larger, professionally managed company is in private equity and strategic territory.
Each channel has trade-offs. A business broker handles the full process and lists your business widely, but charges 8-12% of the sale price (often a $10-15k minimum). Online marketplaces give you reach for a lower fixed cost but put the screening, NDAs, and negotiation on you. Sell-side M&A advisors run a competitive process for larger deals. Buyer-matching platforms like DealSeam are different again: DealSeam is not a traditional business broker, it works on a buyer-paid success fee, so sellers pay nothing and are introduced to qualified buyers where there is a fit.
Whatever channel you choose, preparation drives outcomes. Buyers pay the high end of the range for clean, reviewed financials, recurring or contracted revenue, a management team that can run things without you, and low customer concentration. Expect a full sale process to take roughly 6-12 months. Getting your numbers and add-backs in order before you go to market is the single biggest lever on both speed and price.
A practical sequence: first get a realistic valuation so you can identify the right buyer type, then prepare clean financials and a short summary of the business, then select the channel that matches your size and timeline. Running a valuation early also tells you whether to widen the buyer pool to individuals and search funds or focus on private equity and strategics.
Related questions
Who actually buys small and mid-sized businesses?
Four buyer types: individual buyers (typically 2-3x SDE), search funds (3-5x EBITDA), private equity firms (4-8x EBITDA), and strategic acquirers (5-10x EBITDA). Smaller owner-operated businesses skew toward individuals and search funds; larger ones toward private equity and strategics.
How much does a business broker cost?
Most business brokers charge a commission of 8-12% of the sale price, often with a minimum fee around $10-15k. The fee is typically paid by the seller at closing.
Do I need a broker to find buyers?
No. You can sell directly through marketplaces, M&A advisors, or buyer-matching platforms. DealSeam, for example, is not a traditional business broker and runs on a buyer-paid success fee, so sellers pay nothing to be introduced to qualified buyers where there is a fit.
How long does it take to find a buyer and close?
A full sale process typically takes about 6-12 months from preparation to close. A private equity process tends to run roughly 4-6 months from signed letter of intent to close once a buyer is engaged.
What do buyers look for before they make an offer?
Clean, verifiable financials, recurring or contracted revenue, a business that does not depend entirely on the owner, and a diversified customer base. These are the factors that move you toward the high end of the multiple range.
Sources & methodology
- •DealSeam guide: How to Sell a Business
- •DealSeam Buyer Types and Pricing
- •DealSeam EBITDA Multiples by Industry
This is general educational information, not legal, tax, or financial advice. Consult a qualified CPA and M&A attorney about your specific situation.
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