Sellers Frequently Asked Questions
Why use a business broker?
Business brokers, or business intermediaries, are experts in guiding owners through what can be a complex and overwhelming sales process. We know how to confidentially and efficiently market your business, connect with the right buyers, and protect your time so you can stay focused on running your company. A skilled broker not only helps you secure the strongest offers and most favorable terms, but also shields you from seasoned buyers who may try to take advantage of less experienced sellers. Just as important, we provide a clear, realistic perspective on your business’s value—bridging the gap between what you hope to achieve and what the market will support. By highlighting your strengths and identifying opportunities to increase value, we position your business for the best possible outcome when the time is right to sell.
What will our first meeting or phone call be like?
We want to get to know you and your business, and understand where you are in your exit plan. Often times, these first conversations are focused on answering your questions and clarifying what selling a business involves—without any pressure or commitment. Remember, you decide if and when you want to sell your business.
What does cost to sell my business?
NextStep operates on a success-fee model, meaning we earn a 10% commission on the sale of business assets and 6% on any associated real estate, payable only when your business is sold. For businesses valued over $1 million, we negotiate a fee structure that reflects the scope of the engagement. Being commission-based ensures that our goals are aligned with yours in maximizing the value of your business.
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 it and forget it.” Once an offer is accepted, our focus shifts to organizing and coordinating due diligence to ensure a smooth path all the way to closing. Because we are highly invested in each engagement, we are selective in working with owners and businesses where we can make the greatest impact. Even though we cannot represent every business that contacts us, we remain committed to providing guidance and helpful recommendations.
How is a business valued?
The short answer is that the market sets the price. While that may sound simple, many factors influence what a business sells for. Broader economic conditions, such as interest rates or overall market sentiment, can affect buyer activity, and industry-specific trends can also play a role. Ultimately, however, the financial performance of the business carries the most weight. Revenue trends, whether upward or downward, directly impact value. Non-financial factors also matter, such as customer concentration or a business being heavily reliant on the owner, and these can affect valuation. 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 some cases—such as specialty businesses or those with intellectual property—we may recommend a third-party certified business appraisal. These appraisals, paid for by the client, provide an independent, accredited 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—prepared in-house and included in the engagement—is a practical way to go to market.
What do buyers look at besides the numbers?
While financial performance is critical, buyers also evaluate other qualities that set a business apart from its competitors. Many of these characteristics of your business don’t appear on the balance sheet, yet they can be just as impactful as physical assets. For example, an organized business with documented processes and standard operating procedures demonstrates stability and scalability—factors that increase buyer confidence.
Buyers also look for potential weaknesses. Issues such as customer concentration, outdated systems or equipment, or poor bookkeeping records can detract from value. When these areas are acknowledged and paired with a plan for improvement, they can become opportunities for a buyer. Importantly, buyers understand that no business is perfect. Identifying both strengths and weaknesses builds trust and provides transparency. And with enough time and planning before a sale, you may choose to address these gaps or inefficiencies yourself and capture that added value directly in your sale.
What if I’m not 100% sure I’m ready to sell?
It’s natural for business owners to feel uncertain about selling—after all, a business often represents years of hard work and a major part of their lives. That’s why having a clear plan is so important in determining whether you’re truly ready to move forward. One helpful step is to define your post-sale goals. Whether you picture retirement, starting a new venture, traveling, or spending more time with family, clarifying your next chapter provides direction and confidence. A well-thought-out plan also brings peace of mind, ensuring you’re transitioning into something meaningful. It replaces uncertainty with purpose and helps guide your decisions throughout the sale and beyond.
How is sale of my business kept confidential?
Confidentiality is one of the most critical components in selling a business, and at NextStep we follow strict protocols to protect your company throughout the sales process. We recommend confidential, or “blind,” listings to safeguard sensitive information, as the risks of customers, employees, or competitors learning about a potential sale usually outweigh any benefit of an open listing.
Every step of our engagement is designed with confidentiality in mind. Prospective buyers are carefully vetted and qualified before receiving any details, and each is required to sign a non-disclosure agreement to protect sensitive information. Company information is released in a controlled manner, only when appropriate and at the right stages. Site visits and meetings are scheduled discreetly to minimize disruption, and all communications and records are handled securely to maintain the highest level of care.
How involved do I need to be in selling my business?
The most time you’ll invest usually comes at the beginning of the engagement, when we meet with you to learn about your business and gather the necessary information and financial documents. After that, our goal is to ensure you spend time only on real opportunities so you can continue focusing on your current role.
Any buyers you interact with will have been thoroughly vetted and are ready and able to move forward with serious offers. We prepare a comprehensive review of your business in the Confidential Information Memorandum (CIM) that provides prospective buyers with the overview they need. When buyers have questions that only you can answer, 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 main street businesses sell within six to twelve months of being listed. More complex or larger businesses can take up to eighteen months due to financing requirements, more detailed due diligence, or extended negotiations. We emphasize speed in a sale only if you’ve indicated that selling quickly is a top priority. In those cases, realistic expectations and a willingness to negotiate with various offers may be necessary to achieve that goal.
Our typical approach is to position the pricing and market your business to generate multiple competitive offers with favorable terms. Throughout the process, you’ll receive regular updates on listing activity, along with our consultation on different offers. 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?
It may seem counterintuitive, but the best time to sell is when the business is performing well—not only financially, but also operationally. A stable employee base, upward-trending sales and profitability, and smooth day-to-day operations all contribute to stronger value. Conversely, when an owner is burned out and the business begins to show signs of neglect, buyers will notice and the value will be negatively affected.
Equally important, early planning and connecting with a business broker or intermediary is often overlooked. Partnering with an advisor years before you intend to sell can significantly impact 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. These buyers frequently rely on SBA-backed financing or seller financing to complete their purchase. 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 buyers expands to include private equity or investment groups. These seasoned buyers typically look for well-run operations with strong leadership and processes already in place, allowing them to transition into ownership and scale using the existing infrastructure. Put simply, the more structured and independent your business is from you, the broader and more sophisticated the buyer pool becomes. At NextStep, our goal is not to market to every possible buyer, but to focus on the right ones.