Selling an established, mid-size business

Who buys these

Long-term holding companies and family offices that buy to keep. Private equity groups, especially at the larger end. Strategic buyers: competitors, suppliers or customers who want what you’ve built.

Each values a business differently, so it helps to reach more than one kind.

What they look for

• Several years of steady, documented profit.
• A manager or senior team that can run things without you.
• Customers spread out, so no single one is too big a share of sales.
• Staff who are likely to stay.
• A lease or property that supports the business for years.

The real estate side

At this size there may be a long lease, more than one location, or a building you own. Each needs planning: landlord consent, enough lease term for the buyer’s lender, and a decision about whether the building is part of the sale. This is my day job, and it is where a lot of mid-size sales get stuck.

Timing

For an established business with clean books and a solid lease, six months to a year from the first call to closing is a common range. Owners who start preparing a year or two ahead usually do better.

Questions people ask

Do private equity buyers keep the owner on?

Often for a transition period, sometimes longer with a share of the business. Agree on it in writing.

Should I sell the building with the business?

It depends on the buyer. Some want both, some prefer a lease from you. We can test both.

How confidential is the process?

Buyers sign a confidentiality agreement before they see details, and you decide when staff hear about it.