Selling A Business

For an owner, selling a business is a significant decision. Most owners sell their business because of lifestyle reasons - retirement, family, health, a new chapter. However:

  • 80%

    Of Business Owners Do Not Know The Value of Their Business

  • 90%

    Of Business Owners Do Not Manage Their Business To Value

  • 80%

    Of Business Owners' Net Worth Is In Their Business

Get Started

At Brentwood Growth we understand each of these facts, have been in your shoes, and respect what you have accomplished. We will work with you through a process and at your pace to get comfortable and ready to exit the business on your terms. This process has logical steps:

The Process

Types Of Buyers

Brentwood Growth will look at each of the following three groups with you to get the maximum exposure, visibility and value. Each group has characteristics and objectives that are unique and have pros/cons. Brentwood Growth will work with you to identify which groups make sense to market your business to. Then, utilizing proprietary databases built through the years, we build strategic lists and subscribe to portals to obtain maximum exposure and interest.

Financial Buyers
Objective - Investment only; not involved day to day; looking for solid, consistent cash flow performance:
  • Size typically based on EBITDA
  • Revenue 'churn'
  • Reliance on founder and management in place
Risks to be considered include:
  • Size typically based on EBITDA
  • Revenue 'churn'
  • Reliance on founder and management in place
  • Partner or vendor relationships
  • Customer concentrations (>10% to 20%),
  • Competitors
  • Key employees
  • Economic or market trends
Revenue Growth must be demonstrated and sustainable:
  • Size typically based on EBITDA
  • Revenue 'churn'
  • Reliance on founder and management in place
Returns based on consistent cash flow performance and valuation growth; more likely to 'buy low-sell high':
  • Size typically based on EBITDA
  • Revenue 'churn'
  • Reliance on founder and management in place
EBITDA multiples 2.75X to 3.5X at <$1M; 3.5X to 8+X for >$1M <$5M depending on risk factors:
  • Size typically based on EBITDA
  • Revenue 'churn'
  • Reliance on founder and management in place
Owner / Operators
Active management responsibility – looking for solid, consistent cash flow performance:
  • Size typically based on EBITDA
  • Revenue 'churn'
  • Reliance on founder and management in place
Risks to be considered include:
  • Size typically based on EBITDA
  • Revenue 'churn'
  • Reliance on founder and management in place
  • Partner or vendor relationships
  • Customer concentrations (>10% to 20%)
  • Competitors
  • Key employees
  • Economic or market trends
Revenue growth must be demonstrated and sustainable:
  • Size typically based on EBITDA
  • Revenue 'churn'
  • Reliance on founder and management in place
Returns based on consistent cash flow to fund owner/operator compensation as well as investment in company to drive growth and valuation enhancement:
  • Size typically based on EBITDA
  • Revenue 'churn'
  • Reliance on founder and management in place
EBITDA multiples similar to financial investors with some limits due to financing or for annual compensation for management role to be included:
  • Size typically based on EBITDA
  • Revenue 'churn'
  • Reliance on founder and management in place
Strategic Buyers
Similar factors as Financial Buyer to varying degrees depending on strategic considerations:
  • Size – typically based on EBITDA
  • Revenue “Churn”
  • Reliance on founder andmanagement in place
Returns based longer term return on investment and 'accretive' shareholder value:
  • Size typically based on EBITDA
  • Revenue 'churn'
  • Reliance on founder and management in place
  • Partner or vendor relationships
  • Customer concentrations (>10% to 20%)
  • Competitors
  • Key employees
  • Economic or market trends
EBITDA multiples likely to be higher based on individual buyer perception of value of seller’s strategic considerations:
  • Size typically based on EBITDA
  • Revenue 'churn'
  • Reliance on founder and management in place
  • Partner or vendor relationships
  • Customer concentrations (>10% to 20%),
  • Competitors
  • Key employees