Sellers Frequently Asked Questions
Why use a business broker?
Business brokers, or business intermediaries, are experts in the sales process and will help you navigate what can be a complex and overwhelming process. Aside from our sessions and assisting us with collecting your company information, your time and energy should be spent on continuing your current role in the business, not figuring out how to sell your business.
A broker also helps achieve the best offers and terms and conditions you can for your business. Buyers naturally want to maximize the value of their purchase and if your business is large enough, it could be targeted by experienced buyers like investment groups or larger industry companies that will recognize a less experienced seller.
On the other hand, realistic valuations are also important in attracting prospective buyers. A business owner knows what they want for the business but that might be a far reach from what the market might pay for it. A broker, in some circumstances with the support of a certified business appraisal, has the experience and knowledge of what the market will support as a sales price.
What will our first meeting or phone call be like?
We want to learn about you and your business and have a sense of where you are in your exit plan. Many times of these first communications are answering questions about what selling a business entails without any commitment. Remember that you decide when to sell your business.
What does cost to sell my business?
NextStep Business Brokers operates on a success-fee model: we earn a 10% commission on the sale of business assets and 6% on any associated real estate, payable only upon closing. For businesses valued over $1 million, we negotiate a fee structure that reflects the scope of the engagement.
We dedicate significant time and resources to every engagement—preparing listings, marketing strategically, communicating with buyers, and carefully screening prospects before they reach you. We don’t “list and forget.” Once an offer is accepted, our focus shifts to organizing and coordinating due diligence to ensure a smooth path to closing.
Because we prioritize quality over volume, we work with clients where we can make the greatest impact. That being said, we are committed to providing guidance and helpful recommendations even though we cannot represent every business that contacts us.
How is a business valued?
The short answer is: the market sets the price. While that may sound simple, many factors influence the price a business is traded at. Broader economic conditions—such as interest rates or overall market sentiment—can affect buyer activity. Industry-specific trends can also play a role, much like real estate cap rates vary across asset classes. Some industries command higher valuation multiples than others.
Ultimately, however, the financial performance of the business carries the most weight. Sales trends, whether upward or downward, directly impact value. Non-financial factors also matter: for example, heavy customer concentration may be viewed as a risk and lead to lower offers. Another example is the business being heavily reliant on the owner. Because so many variables shape how the market responds to a new listing, we rely on both industry databases and our experience to help set a realistic, market-driven price.
In certain cases—such as specialty businesses, or those with intellectual property or patents—we may recommend a third-party certified business appraisal. These appraisals, paid for by the client, provide an independent, defensible valuation. While NextStep does not conduct these appraisals, we assist in gathering the necessary financial data and may earn a referral fee from the valuation firm.
For many main street businesses, however, a broker’s valuation—combined with an assessment of current market conditions and industry trends—provides a reliable foundation for going to market.
What do buyers look at besides the numbers?
While financial performance is critical, buyers also evaluate the qualities that set a business apart from its competitors. Many of these strengths don’t appear on a balance sheet, yet they can be just as valuable as physical assets. For example, an organized business with documented processes and standard operating procedures demonstrates stability and scalability—factors that increase buyer confidence.
At the same time, buyers look for potential weaknesses. Issues such as customer concentration, outdated systems, or incomplete records can detract from value. However, when these areas are acknowledged and paired with a plan for improvement, they become opportunities. Buyers typically won’t pay for work they must do themselves, but showing awareness and transparency signals a realistic assessment of the business.
Importantly, buyers understand that no business is perfect. Identifying both strengths and weaknesses builds trust and provides clarity. And with enough time before a sale, you may choose to address certain weaknesses yourself—capturing that added value directly in your transaction.
What if I’m not 100% sure I’m ready to sell?
It’s completely normal for business owners to feel uncertain about selling. After all, this is one of the biggest financial and personal decisions you’ll ever make. For many, the business has been central to their identity, routine, and purpose for years. That’s why having a clear plan for what comes next is so important—it helps you know whether you’re truly ready to move forward.
A helpful exercise is to define your post-sale goals. Whether you envision retirement, launching a new venture, traveling, or spending more time with family, clarifying your next chapter provides direction for both timing and financial planning. Instead of simply stepping away, you’ll be selling toward something meaningful.
A well-thought-out post-sale plan also brings peace of mind. It replaces uncertainty with confidence, guiding your decisions during negotiations and transition. The result is a smoother, more rewarding exit—one that aligns with the future you’ve worked so hard to create.
How is sale of my business kept confidential?
Confidentiality is one of the most critical elements in selling a business, and at NextStep we follow strict protocols to protect your company’s value throughout the process. We recommend confidential—or “blind”—listings to safeguard sensitive information, as the risks of customers, employees, or competitors learning about a potential sale almost always outweigh any benefit of a public listing.
From the very beginning, every step of our process is designed with confidentiality in mind. Interested buyers are carefully vetted and qualified before receiving any details, and each is required to sign a non-disclosure agreement to ensure sensitive information remains protected. Company information is released in a controlled manner, only as appropriate and in stages, while site visits and meetings are scheduled discreetly to minimize disruption. All communications and records are handled securely, maintaining the highest level of care.
How involved do I need to be in selling my business?
The most time you’ll invest in the sale process comes at the beginning, when we’re learning the details of your business and gathering the information needed to prepare your listing. After that, aside from regular updates on progress, our goal is to ensure you only spend time on real opportunities.
That means you’ll only engage with buyers we’ve thoroughly vetted—serious, qualified prospects who are ready and able to move forward. We compile the essential details into a Confidential Information Memorandum (CIM), giving buyers the foundation they need. Beyond that, buyers will naturally have questions that only you can answer. When those moments come, we’ll advise and prepare with you so you feel confident and ready for those discussions.
How long does it take to sell a business?
Most businesses sell within six to twelve months of going to market. More complex transactions—or those approaching the lower middle market—can take up to eighteen months due to financing requirements, detailed due diligence, or extended negotiations.
We only emphasize speed if you’ve shared that selling quickly is your top priority. In those cases, realistic expectations and a willingness to negotiate on potentially lower offers may be necessary to meet that goal.
Our typical approach is to position pricing and market the listing to generate as many competitive offers with the best terms as possible. Throughout the process, you’ll receive regular updates on listing activity, along with our recommendations. While we bring experience and market insight to guide you, our role is ultimately to represent your interests and ensure the process reflects your intentions.
What is often overlooked when selling a business?
Two important factors are often underestimated when preparing for a sale.
First, the timing and condition of the business. The best time to sell is when the business is performing well—not only financially, but also operationally. A stable employee base, upward sales and profitability trends, and smooth day-to-day operations all contribute to stronger value. On the other hand, when an owner is burned out and the business begins to show signs of neglect, buyers notice—and value is negatively affected.
Second, the importance of early planning with a business intermediary. Partnering with an advisor years before you intend to sell can have a significant impact on the offers you receive. Early guidance helps you focus your time and resources on the areas that matter most, ensuring you maximize the return on the energy and capital you’ve invested. Selling a business is a complex process, and the implications are best managed with a clear plan and the right advisor by your side.
Who might buy my business?
The type of buyer your business attracts depends largely on its size and structure. Smaller, owner-operated businesses often appeal to individual buyers—people looking to step into business ownership and take an active role in daily operations. As businesses grow and become less dependent on the owner, they begin to draw interest from strategic buyers, such as competitors or industry players seeking to expand geographically, acquire market share, or integrate operations seamlessly.
For larger businesses with established management teams and systems in place, the pool of potential buyers includes private equity firms and investment groups. These buyers typically look for well-run operations with strong leadership and processes already in place, allowing them to transition and scale relying solely on the existing infrastructure. In short, the more structured and independent your business is, the broader and more sophisticated the buyer pool becomes. At NextStep, our focus is not on marketing to every possible buyer, but on targeting the right ones to maximize the return on our efforts.